Marine Cargo or Marine Transit Insurance will provide cover for loss or damage of goods while being shipped around the world and transported across the UK, either by road, rail, sea or air.
There is a difference between buyers and sellers for marine cargo insurance
As the Seller of finished goods, components or raw materials, you may wish to take control of the cost of Marine Cargo Insurance and the level of cover it provides certainly, where you still have a financial interest in the goods being transported. As well as the selection of the Insurer that will potentially be dealing with any claim based on their reputation, financial strength and where they are located.
As the Buyer who imports finished goods, components or raw materials from overseas, again you may wish to take control of the cost of Marine Cargo Insurance and the level of cover provided. As well as the selection of the Insurer that will potentially be dealing with any claim based on their reputation, financial strength and where they are located.
Why might you need to consider Marine Cargo Insurance for your business?
Marine Cargo Insurance will typically cover damage to goods against a wider range of causes, than Goods in Transit policies. It may also provide extensions such as control over the disposal of branded goods.
Marine Cargo Insurance can cover transits worldwide via any means of transport, giving real warehouse-to-warehouse cover.
A haulier will restrict their legal liability for damage caused to goods whilst in their control, with strict limits often stipulated by their trade association. Therefore, regardless if the damage is their fault, the compensation available will often be inadequate.
A Bank may require proof of Marine Cargo Insurance with sales made with a letter of credit.
The policy will provide indemnity under General Average if a vessel is at risk of being lost then part of cargo might be sacrificed to prevent a total loss. General Average mandates that all parties will contribute to the loss and Marine Cargo Insurance ensures a business’ contribution is covered.
Marine Cargo Insurance policies are available for a one off transit or on an annual basis.
Dependent on the type of goods transported, theft from own vehicles left unattended and loaded overnight can covered, subject to certain policy requirements.
Excesses can be as low as £100.
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- Buyers & Sellers Contingency
If you would like to know more about Marine Cargo Insurance please contact JPM Insurance Advisers Ltd on 0121 270 4800.
Written by Jonathan Till