Marine cargo insurance covers losses arising from physical damage to goods whilst being transported around the world, whether by road, rail, sea or air.

Any number of things can happen to your goods while they are being transported. They could be stolen en route or destroyed in a collision at sea; either way, resulting in a financial burden for you, if not insured. Marine cargo goes beyond the cover provided by goods in transit insurance. It ensures your goods are protected during loading and unloading, while in storage or while being transported – domestically or internationally.

Marine cargo insurance covers a range of goods, from raw materials and single components, through to finished products and appliances. It’s designed for any business – large or small –that imports, exports and/or distributes goods around the UK, such as manufacturers, wholesalers, retailers and distributors.

It reduces your exposure to financial loss – whether buying or selling goods, you have a financial interest in their safe transportation and delivery. Marine cargo insurance protects your interest in the event of a loss.

It’s usually a contractual requirement – as part of the sale contract, it’s often a commercial necessity to have marine cargo insurance. Being able to quickly replace damaged goods will help you maintain strong customer relationships. Marine cargo insurance can also protect the interests of the banks or third parties helping to finance the transaction.

Carrier’s liability insurance won’t fully protect you – haulage and shipping companies may be responsible for the transportation of your goods, but their liability will be limited by contract or law in the event of loss.

Furthermore, carrier’s liability insurance doesn’t cover many common causes of loss, such as General Average. Any compensation available often falls short of the full valuation of the goods and pursuing overseas hauliers can be a difficult and time-consuming process.

Your clients can maintain control of their own insurance – if a UK retailer imports goods from China, the cost of marine cargo insurance is likely to be included as part of the sales contract. The insurance is then taken out with a Chinese insurer by the supplier. In the event that the goods are damaged en route, the UK retailer would have to deal with the Chinese insurer via a UK agent – someone with whom he has no usual contact or relationship.

The simpler alternative is for the UK retailer to arrange their own marine cargo insurance via a UK broker and insurer. The sales contract would be amended to reflect that responsibility for insurance now sits with the buyer. In the event of a claim, the process would be much quicker and easier, and the cost of insurance is likely to be far more competitive.

Protection from General Average – General Average is a legal principle in maritime law, whereby all cargo owners proportionately share losses resulting from voluntary sacrifice or costs incurred in order to prevent a total loss. Following the declaration of a General Average, cargo will be held pending receipt of General Average Guarantees and Bonds. Cargo owners are well advised to be insured, so their insurers can handle these situations on your behalf and provide the required guarantees to allow your cargo to be released.

• It reduces your exposure to financial loss – whether buying or selling

  goods, you have a financial interest in their safe transportation and delivery.

  Marine cargo insurance protects your interest in the event of a loss.

   

  It’s usually a contractual requirement – as part of the sale contract, it’s often a commercial necessity to have marine cargo insurance. Being able to quickly replace damaged goods will help you maintain strong customer relationships.

  Marine cargo insurance can also protect the interests of the banks or third parties helping to finance the transaction.

   

  Carrier’s liability insurance won’t fully protect you – haulage and shipping companies may be responsible for the transportation of your goods, but their liability will be limited by contract or law in the event of loss.

  Furthermore, carrier’s liability insurance doesn’t cover many common causes of loss, such as General Average. Any compensation available often falls short of the full valuation of the goods and pursuing overseas hauliers can be a difficult and time-consuming process.

   

  Your clients can maintain control of their own insurance – if a UK retailer imports goods from China, the cost of marine cargo insurance is likely to be included as part of the sales contract. The insurance is then taken out with a Chinese insurer by the supplier. In the event that the goods are damaged en route, the UK retailer would have to deal with the Chinese insurer via a UK agent – someone with whom he has no usual contact or relationship.

  The simpler alternative is for the UK retailer to arrange their own marine cargo insurance via a UK broker and insurer. The sales contract would be amended to reflect that responsibility for insurance now sits with the buyer. In the event of a claim, the process would be much quicker and easier, and the cost of insurance is likely to be far more competitive.

   

  Protection from General Average – General Average is a legal principle in maritime law, whereby all cargo owners proportionately share losses resulting from voluntary sacrifice or costs incurred in order to prevent a total loss. Following the declaration of a General Average, cargo will be held pending receipt of General Average Guarantees and Bonds. Cargo owners are well advised to be insured, so their insurers can handle these situations on your behalf and provide the required guarantees to allow your cargo to be released.