Marine Cargo Insurance – Things that are often misunderstood or even overlooked

Case Study – Relying on Haulier’s Insurance Relying on Haulier’s cover – don’t do it. We were introduced to a company who until recently did not purchase Marine Cargo Insurance, and were left out of pocket following a claim. They incorrectly assumed as they were using a Haulage Company to move their goods that loss or damage would be covered by the Haulier’s insurance. This is not correct. Haulier’s are only liable for their legal liability to your goods, not the goods themselves. Therefore it would need to be proven that they were legally negligent in causing loss or damage before any compensation was due to you. You must consider:

• Even if negligence is proven, usually their liability is limited under the terms of RHA Conditions (or similar) – this would typically be £1,300 per ton regardless of the goods being carried. This could leave seriously out of pocket.
• Losses outside of the Haulier’s control are not covered – “acts of god”
• Are the limits of indemnity on the haulier’s policy adequate?
• Who are they insured with, are they a reputable and solvent?
• Is the haulier you speak with actually the ones moving the goods.

It is common practice for hauliers to sub-contract work to other firms, so even if you check your haulier it may be in vain if they are sub-contracting to another company who may even sub-contract the work again themselves! The solution Protect your bottom line and purchase Marine Cargo Insurance. It may be cheaper than you think (premiums start as low as £250) and we can review with you your exposures to tailor a policy on your behalf. Marine Cargo Insurance - Goods In Transit Insurance To find out more how we can help you, please contact:- Matthew Price Broking Director Ascend Broking Group 01245 449 062 matt.price@ascendbrokingold.co.uk