Why Should Your Business Purchase Marine Freight Insurance?

Marine freight insurance protects the transport chain.

Marine Cargo Insurance, or Ad Valorem Insurance, can cover your goods from the factory to the final delivery, regardless of the mode of transportation: sea, air, or land.

Your Marine Cargo Insurance Brokers deliver a unique certificate of insurance for all transport.

Marine Freight Insurance protects against liability limits established by International Conventions.

It is wrong to think that in the event of a disaster, your carrier’s liability insurance is sufficient to cover all your damages.

Your marine business will receive a lump-sum payment only if the liability was incurred and proven. The amount is specified in international conventions and is usually less than the damage actually suffered.

• Under the Hague-Visby rules applicable to maritime transport: 2 SDR per kilo (about $2.97) or 666.66 SDR per package (about $989.55) as of October 2014. The strongest of the two limits applies.

• For air transport, except for the declaration of value or gross negligence:

  • 16.5837 SDR per kilogram ($24.62 per kilo) under the Warsaw Convention.

  • 17 SDR per kilogram ($25.23 per kilo) under Montréal Convention.

• For international road transport (CMR), 8.33 SDR per kilogram, or $12.36 per kilo. Those excepting declaration of value or special interest in delivery, as well as fraud or gross negligence of the carrier.

  
  

You can contact your Marine Cargo Insurance Brokers for other limitations of liability and provide you with additional information on Marine Freight Insurance.

Furthermore, if the carrier’s liability is not engaged (such as in cases of force majeure), you will not receive compensation.

Instead, Marine Freight Insurance compensates you on the declared insurance value. If you have Marine Cargo Insurance for the actual value of your goods and freight cost base + 10%, you will be compensated in that proportion.

Marine Freight Insurance protects against the general average.

Often misunderstood, the general average can have serious financial consequences.

There is General Average if a commander has to sacrifice some of the goods on board to escape a threatening danger.

There is also the General Average if a danger incurs very important rescue costs (e.g., fire, grounding).

In those cases, all parties having goods on the ship must contribute to the expenses in proportion to the saved values.

Marine Freight Insurance protects in case of disaster

Finding the responsible party for damage throughout the transport chain is often difficult and expensive. The settlements are very rare and often derisory

If you subscribed to Marine Freight Insurance for your goods, you will be directly compensated for your damages.

Marine Cargo Insurance Brokers’ role:

• He is your agent.

• He advises you and negotiates the best terms for your Marine Freight Insurance.

• He defends your interests in case of damage (procedures, reserves, creation of the record, expertise …)

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