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.