Claims Adjuster Practice Exam 2025 - Free Claims Adjuster Practice Questions and Study Guide

To ensure coverage for potential collision damage to an insured's ship, it is essential that a written policy is in place. A written policy serves as a formal agreement between the insurer and the insured, outlining the specific terms, conditions, and exclusions of the coverage. This documentation provides clarity regarding the extent of coverage, the responsibilities of both parties, and the claims process in case of an incident.

Having a written policy is critical in the marine insurance context since ships and maritime activities involve unique risks and regulations. The absence of such a policy can lead to disputes over coverage and claims in the event of an accident or damage, leaving the insured without proper protection.

General liability insurance is focused on protecting businesses from claims involving bodily injury and property damage arising from their operations, which does not cover the specific needs of maritime collision damage. A commercial auto policy is designed for vehicles, not ships, hence it is not applicable in this scenario. Flood coverage pertains to property damage from flooding rather than collision, making it irrelevant for potential collision damage to a ship.