Cargo Insurance
- In the process of transporting goods, at times cargo could be delayed, lost in transit, stolen or damaged.
- Shippers often question the need to purchase additional cargo insurance!
- It is always suggested to cover Insurance especially on international shipments to reduce your exposure to financial loss. If you are an exporter who has not been paid for the goods at the time of shipment, or an importer who has paid for all or part of the goods before receiving them, you must be aware that you run the risk of suffering a financial loss if the goods are lost or damaged during transit.
- You may also be required to post a bond – at times unlimited in time and value – and/or a cash deposit in order to release your cargo following a declaration of general average by the carrier even though there is no loss or damage to your goods. With specific cargo insurance, your insurance company will take over the responsibility and pursue the release of your cargo.
- Often your terms of sale bind you to provide cargo insurance to protect the buyer’s interest or their bank’s interest. This is especially true when selling goods CIP or CIF. Failure to do so will not only subject you to financial loss if there is loss or damage to the goods, but since this establishes non-compliance with the terms of your sale with the buyer, this can lead to legal issue and loss of sales.
- Shippers assume that their goods are covered are fully by the carriers or buyers insurance and hence they are covered – This is not always the case.
- Carrier’s liability is always limited and often it is a time consuming process to prove fault.
- This is costly in terms of time and money and also legal fees.
- Buyers insurance may not always be sufficient and often does not cover all risks.
- Specific insurance coverage can also cover customs duties and taxes.
- Through our licensed associations, we offer a wealth of experience and competitive rates through the use of competent insurance markets.
- Key features of our brokerage services include global comprehensive coverage, quick rate calculations and effortless issue of electronic insurance certificates.
