Marine Cargo Insurance
Container ships, bulk carriers and tankers move billions of tonnes of cargo around the World each year. Factor in air freight and the overland carriage of goods and the numbers are mind boggling!
The chances are, if your business manufactures or buys or sells raw materials, component parts or finished goods then you will need Marine Cargo Insurance.
The cover provided is generally All Risks of physical loss or damage (subject to certain exclusions) to the cargo whilst in transit and it is not uncommon to build in stock cover and other extensions to a Marine Cargo policy.
Due to the number of different territories that can be involved, local legislation, areas where embargoes and restrictive trade measures apply, it is important that your Insurance Broker is experienced and knowledgable in this class of insurance. It's also very important to understand the Terms of Sale that your goods are bought or sold under and what responsibilities you and the other parties to the contract have.
Things to look out for:-
1) Suppliers and/or customers arranging cargo cover on the goods :-
i) make sure that you are clear about the extent of cover that has been arranged - is this full 'All Risks' cover or specified perils.
ii) be aware of any deductibles that apply - higher deductibles can reduce the premium for the supplier/customer when arranging the insurance but could leave you out of pocket if there is a claim.
iii) understand where ownership of the goods passes and if the insurance terminates prior to final delivery.
iv) have you seen a copy of the certificate/insurance policy?
v) Is the policy subject to UK legisltation or that of another country?
vi) Could the insurance be arranged by yourself, in this country, for a lower premium?
2) Where the cover provided by a carrier is being relied upon instead of a separate Cargo Insurance policy taken out:-
i) Carriers generally trade under specific Conditions of Carriage which often limit their financial liability to a specific amount - this amount can sometimes be significantly lower than the value of the goods.
ii) A carriers liability may be restricted to exclude circumstances that are beyond their control which could leave you with an unrecoverable loss and seriously out of pocket!
The team at Marquis have many years experience in dealing with the complexities of Marine Insurance and would welcome a conversation about how we can help you.
If you would like a free review of your Marine Cargo Insurances or to discuss further simply click on the button below and we'll get in touch.