Wreck Salvage Risks and the Limits of Marine Insurance: A Phase-Based Analysis and Institutional Proposals

This study examines the multidimensional risks of salvaging sunken vessels and analyzes how marine insurance can be strategically applied across each operation phase.The salvage process is divided into three phases-preparation, execution, and post-salvage management-each associated with distinct legal, technical, and environmental challenges.The study identifies relevant insurance mechanisms for each phase, including hull insurance, cargo insurance, protection and indemnity (P&I), and environmental liability insurance.It emphasizes that aligning insurance coverage with the specific risks of each stage can enhance financial resilience, legal certainty, and operational safety.The study uses real-world examples such as the Sewol Ferry and Costa Concordia cases to reveal the practical limitations of existing marine insurance schemes, particularly in high-risk or public-interest salvage scenarios.Based on this analysis, the paper proposes an integrated, phase-based insurance framework that enables proactive risk distribution rather than reactive compensation.It also offers institutional and policy recommendations to strengthen insurance governance and regulatory preparedness in future salvage operations.Ultimately, the research contributes a structured model integrating salvage risk management with tailored insurance solutions, offering theoretical value and practical guidance for policymakers, insurers, and maritime stakeholders.