Marine Cargo
Even with global reach, rough seas can cause lost or damaged products. What then?
What is Marine Cargo Insurance?
Marine cargo insurance can protect businesses who ship and receive goods via sea. With globalization, supply chains extend worldwide and becomes more complicated, increasing the risks of loss of damage during shipment. A marine cargo policy can protect your business from not only the loss or damage from the delivery and storage of goods, but also the loss or damage of the vessels and cargo.
What does Marine Cargo Insurance cover?
Essentially, marine cargo insurance safeguards your goods financially. It covers the losses and damages caused to ships, cargo or any other types of transportation by which the goods have been shipped. It also takes care of any financial implications should the damage is caused by natural disasters such as earthquakes, tsunami, floods and more. Moreover, man-made calamaties is also covered unless stated otherwise in the policy.
How important is Marine Cargo Insurance?
Technology has helped modernized a number of industries and in turn, has helped the world become a safer and better place. However, transportation is one of the few sectors that has been slow in taking advantage of technology. Goods are notorious for breakage during trasportation which cause tremendous financial ramificiations. Hence, considering the risks that exist, marine cargo insurance is highly advisable as it can help you financially in case of loss or damage to your goods during transit.
Who needs Marine Cargo Insurance?
If your business requires the following, then it is recommended to consider Marine Cargo Insurance as part of your protection plan:
- If your business ships cargo overseas and risk losing revenue through loss or damage of products.
- If your business could be liable for your shipment due to causing damage to others.
How much does a Marine Cargo Insurance policy cost?
The cost of a marine cargo policy is dependent on a number of things. The following are some of the factors that are taken into account when determining the price:
- Nature of goods being transported
- Maximum value of goods on any on conveyance
- Types of transport used
- Location of where the goods are being shipped from and to
- Theft attractiveness of goods
- Quality of the style of packaging
- Claims history
