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7 Reasons For Marine Cargo insurance

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1- There can be high costs following a loss

The cost of losses arising from physical damage to goods in the event of an accident during transit can run into hundreds of thousands of pounds. Marine cargo cover protects a business from these costs.

2- The cover is wider than a traditional good in transit policy 
A marine cargo policy will typically cover goods against a wider range of perils than goods in transit policy. It may also provide extensions such as control over the disposal of branded goods.

3- Marine cargo covers goods worldwide 
A good in transit policy typically covers the goods whilst in transit within the UK. A marine cargo policy can cover transits worldwide via any means of transport, giving true warehouse to warehouse cover.

4- Haulier’s liability insurance may not protect a business’ cargo 

A hauler will restrict their legal liability for damage caused to goods whilst in their control, with strict limits often stipulated by their trade association. So even if the damage is their fault, the compensation available will often be insufficient.

5- Goods are protected whilst in storage 

A marine cargo policy can provide cover for goods before and after transit whilst being kept in a warehouse or other storage facility.

6- Marine cargo cover is often a commercial requirement 

Sales made with a letter of credit, such as when financed by a bank or loan, may require proof of marine cargo insurance. Not insuring the goods may place unnecessary strain on commercial relationships.

7-  War and terrorism covers are included as standard 

Whether under an all risks policy or a more traditional marine cargo policy, war and terrorism cover is usually included as standard, so a business doesn’t need to purchase separate policies.

Protected after a general average incident: If a vessel is at risk of being lost, part of the ship or cargo may be sacrificed to prevent a total loss. General average dictates all parties contribute to the loss and cargo insurance ensures a business’ the contribution is covered.