In case your business is expanding into overseas markets, you should know what marine cargo insurance is all about and how you can buy it.
Are you planning to take your business to overseas markets? If yes, don't forget to ensure the protection of ocean shipments through marine insurance policies. Remember, such policies are not the same as other insurance policies. As we all know, international ocean and air shipments have a unique set of laws which makes the liability of carriers limited to a certain extent.
What is Marine cargo insurance?
When we talk about marine cargo insurance, it covers and protects cargo when it is sailing in the oceanic waters. It is mainly preferred for oil tankers and other heavy cargo-carrying ships. Specifically, the insurance covers losses while the ship is in transit.
While purchasing such kind of insurance, you should not overlook certain important aspects like:Accidents occur
Although, shipping goods overseas is absolutely safe and efficient still freight could be damaged during transit in any way. So, it's a good idea to invest in marine cargo insurance which can cover-up losses in case of any damage. Other than damage, various other accidents can also occur during ocean shipment such as:
Cases of theft: Nowadays, chances of marine cargo theft are high as people are making use of innovative techniques such as identity theft to pick-up goods. If you don't have the insurance, a stolen cargo would be a huge loss for your business to bear.
Lost cargo: Ships that carry tall stacks of cargo containers may lose cargo overboard in case of not so favorable weather conditions. In the recent past, there are many cases of lost cargo are reported so you should be prepared for the worst that your goods might be lost during the shipment.
Unexpected conditions: However, if there are catastrophic events such as explosions, wrecks and storms, it may cause shipments to be lost, delayed and damaged. Don't fret as cargo insurance can protect you from the cost required to get through with such situations.
Damaged goods are the Shipper or Consignee's responsibility
We have to agree to the fact that international shipping laws are favorable for the carrier rather than the shipper or consignee. Well, limiting carrier liability is the right way to promote trade between nations. During the shipment, always ensure that the goods are packed properly with minimal risk possible. To stay protected for the loss, it's important to buy marine cargo insurance
Cargo policy holds fluid underwriting process
All-Risk policies do not consider All occurrences
Unlike a large number of other insurance policies having strict underwriting procedures, marine ones lack rigid guidelines on what is needed. Specifically, many marine cargo insurance policies are available as all-risk and can be customized to particular exposures.
While reading an all-risk insurance policy, many of you may think that the concerned policy covers any accident involving your goods. But this is not the case for all, many policies lay out a specific set of situations that they don't cover. Remember, occurrences that are not mentioned in the policy do not get covered under the policy.
How to get the one for you?
A large number of companies are providing marine insurance and cargo marine insurance policies for the seekers. Considering the client's convenience and necessity, the right policy is suggested by the firm and the final take will be yours.