MARINE CARGO INSURANCE
What is Business Cargo Insurance?
Cargo insurance is the best method to protect the value of your goods from physical damage or theft. In addition, insuring goods can protect the value of the goods against potential losses that can happen while in transit during air, ocean, and rail shipments.
It’s essential to compare the insurance costs with the potential losses and collateral damage that could occur without insurance. The facts show that it is better to purchase cargo insurance than have a serious loss without it.
Some of the most common types of damage are outside a carrier’s liability, including fire, acts of God, strikes, accidents of the sea, insufficiency of packing, and more.
What is covered?
Cargo Insurance covers:
- The policy provides coverage from the risks arising during transit via sea and other modes of transport.
- The insurer compensates for the following: Marine insurance coverage is provided from situations like fire or explosion, sinking, stranding during a cargo journey.
- Compensation is provided for expenses incurred due to collision, overturning or derailment of land conveyance.
- Compensation is provided for expenses under a circumstance wherein the cargo is discharged from a port of distress/disturbance.
- Coverage for general average sacrifice salvages charges
- Protection against any natural calamities such as an earthquake or lightning
- It covers expenses such as survey fees, forwarding expenses, costs of reconditioning and charges of sue
- It also covers the total loss of the package, whether overboard or dropped, while loading or unloading
Cargo insurance Will NOT cover the following:
- Compensation is not provided for any intentional loss or damage
- When the packaging quality of the cargo is not good enough by business
- No cover shall be provided if the damage occurs due to bankruptcy, liquidation or collapse in the finances
- Wear and Tear of the goods in transit
- No cover shall be provided if the loss occurs due to a delay in the cargo
What should you know?
If a marine carrier experiences a fire or other extraordinary sacrifice or expenditure, the carrier may declare a general average. If this happens, all those who have cargo on the ship may be required to share the expenditure cost.
If an ocean carrier declares a general average and your cargo was on the ship, the ship will not release your cargo until the general average deposit is calculated. Therefore, the general average resolution can take weeks and be quite costly.
Although cargo insurance will help cover this cost and help the business get their price of goods back.
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