Benefits of Cargo Insurance:
Cargo Insurance covers the cost of lost or damaged goods should an unforeseen event occur during transportation. Similarly, it will protect you from the financial harm of cargo theft or loss in transit. You should always consider purchasing cargo insurance if you are the party at risk under the applicable Incoterm.
Marine Cargo All Risks Insurance policies can be very flexible and can provide the following covers:
- All Risks Transit Coverage by Air, Sea and Land
- All risks of physical loss of damage to goods during the insured transit
- Risks of loading and unloading
- Costs incurred resulting from declaration of the General Average to distressed vessels
- All Risks Warehousing Coverage
- Long-term storage can also be insured on an All Risks basis.
- Door to Door:
- From the time the goods were in the carrier’s/forwarder’s charge
- At the seller’s premises
- At the country of origin until the time the goods are delivered to the destination
Types of Marine Cargo Coverage:
- Single Coverage is purchased on a per shipment basis. This covers a single shipment under one Certificate and is the standard form of insurance generally purchased by sellers and buyers.
- Open Coverage is purchased where the volumes, numbers and values of shipments are known in advance and where the premiums can be agreed on either on a monthly, half yearly or an annual basis. You pay a lump sum premium at the beginning of the cover based upon the underwriting information submitted to the insurer.