How to Become an Insurance Agent | How to Become a Real Estate Agent | How to Start an Independent Insurance Agency
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.
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.
A marine cargo policy can provide cover for goods before and after transit whilst being kept in a warehouse or other storage facility.
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.
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.