Marine Cargo Insurance

What is Marine Cargo insurance?
Marine cargo: is insurance of property as it moves from place to place. This property is usually known as traded goods (raw materials and components or finished goods). Marine Cargo Insurance is not just for navigation over the seas, but for aircraft, road and rail vehicles. Usually international transportation means two or more types of transportation in order for the traded goods to reach its final destination; this is why you are insured for all types of transportation. For all those that import and export your goods across the globe are you covered?

Do you need Marine Cargo Insurance?
It is important for shippers to know the terms of their shipment regarding ownership and responsibility. So buyers and sellers should arrange insurance on their goods whilst they are in their ‘legal’ possession. Being underinsured could lead to a loss of capital, lawsuits, broken relationships and time wasted.

In some cases you may not need to be insured for all aspects of a Marine Cargo policy: if you are a seller of goods and your liability terms are Ex Works then all you need to do is make sure goods are available for pickup at your own factory/warehouse. It is the buyer’s responsibility to arrange with freight forwarder for insurance, export clearance and handling the paperwork. It gives the seller minimum responsibility. You still should be insured for that small time when goods are in your possession. If you were the buyer in this situation you are responsible for those goods as soon as they have left the warehouse/factory of the seller.

If you would like to be informed of more Marine Cargo liability terms (INCOTERMS) click here: incoterms.gov.uk

Who needs Marine cargo insurance?
The (MIA) Marine Cargo Act (1906), states that those who have an insurable interest in traded goods/shipment should consider buying Marine Cargo insurance.

The UK’s Importing and Exporting Market.
Statistics show that the activity of importation and exportation has fluctuated over the years and for more developed countries such as the UK, our share in the exporting market has dropped drastically and emerging countries such as China have benefitted.

However, UK imports have soared. If you are a buyer importing traded goods, it does not mean that you do not need to insure goods. Importers need to be aware of terms of consignment and know who is responsible for insuring the goods at all times and therefore may need to consider buying Marine Cargo Insurance.

Marine Cargo insurance can be extremely complex with many exclusion clauses and extensions in the policy. You may choose to include certain extensions depending on the goods or risks you need to insure. It is up to your Broker or insurance intermediary to explain these clauses and extensions.

Make sure you understand the exposures you need to insure against and ensure your Marine Cargo Insurance policy provides the appropriate protection. You cannot afford to be exposed.

If you have any queries or comments you would like to share with us, please contact us  or visit our Facebook, Twitter, Linkedin and Google+ pages and give us some feedback.