15.05.2019
Marine cargo insurance helps keep the world on track, as it ensures precious goods are covered during transit.
Simply by considering the huge variety of goods and products around us, it becomes obvious how important Cargo Insurance is. No wonder it’s the most common type of marine insurance.
Have a look at a few of the most commonly asked questions about marine cargo insurance.
1-How long does the policy last?
This depends on your needs. Let’s say you need a one-time shipment for a car you just bought. We will offer cover for that single shipment even if it takes less than a day for it to reach its destination.
On the other hand, if you are a producer of goods exporting worldwide (say a clothes manufacturer) then it is not practical to negotiate the terms of the policy each time you want to send a shipment. The most common option is to have an Open cover policy. This means that you agree on the all the terms with us once, and then all shipments falling within the terms of the original agreement will be automatically covered subject to declarations only.
In other words, Open cover policies will cover multiple shipments for the life of the policy, which is normally 12 months.
2-What type of coverage does it provide?
You also have options here, courtesy of Institute Cargo Clauses (ICC). ICC A, for example, is the highest level of coverage. ICC B offers moderate coverage, and ICC C carries with it a basic amount of coverage. Your premiums will be priced accordingly. Additionally, there are clauses in place to protect goods that come with higher risks, such as frozen foods.
And even though the name implies shipments by sea, Marine Cargo insurance actually covers air and land transit as well and different clauses exist to that effect.
3-Does it matter what’s being shipped?
Yes, as we’ve just learned, goods like frozen foods and meats require special coverage, since they can be compromised should refrigeration fail. To give another example, some goods will have specific packaging conditions as well. It’s absolutely essential that you properly declare all goods being shipped - the way your coverage pays off depends on it!
4-When does coverage start and end?
Under normal circumstances, you’re covered as long as your goods are on the move. It all begins when your cargo takes off on the journey, and coverage ends when the shipment arrives at its intended destination. Some exceptions might apply.
5-Are there any exclusions?
It’s recommended that you read your policy carefully to learn more about specific exclusions. But generally speaking, there are several main exclusions. They include willful misconduct (usually on behalf of a crew member during transit), delay, inherent vice (where goods are known to be negatively impacted by certain traveling conditions, for example), ordinary wear and tear, and lack of due diligence.
It is highly recommended to get expert advice when arranging cover, considering the global nature of the Marine trade, as well as the special circumstances surrounding the nature of goods and their shipment conditions.
For more information, please contact your broker. We are also a click away to assist you in arranging appropriate cover or provide you with a quote.
Terms and conditions apply.
