Marine Cargo Insurance Coverage

If your business relies on global trade, marine cargo insurance isn’t just a nice-to-have, it’s a must. Whether you’re shipping goods by sea, air or land, the risks are real. Lost, damaged or stolen cargo? Delays that throw your entire supply chain off course? These things happen more often than you’d think and that’s where marine cargo insurance steps in, protecting your shipments and ensuring you stay compliant with international shipping regulations. 

From ocean freight insurance covering transit risks to marine liability insurance shielding you from unforeseen claims, having the right cover means peace of mind – and vital financial protection. So don’t leave your cargo’s safety to chance.

Call Ascend Broking Group today to dis

Marine cargo covers any movement of goods in the UK and around the world

Who needs cargo insurance?

Those who rely on insurance arranged by freight forwarders may not be certain about:


• the level of cover,
• the financial stability of the insurer,
• the claims service they will receive, or
• the true cost of the cover.

Call for a quote

Make an enquiry

If you buy, sell import or export goods then you will need to purchase marine cargo insurance

It is inevitable that from time to time accidents will happen, or goods may be lost, damaged or stolen during their journey to their final destination.

Many firms choose to utilise the services of a Haulage Contractor, and a common misconception is that their goods are fully insured by the haulier. This is not always the case. Hauliers do not insure your goods; in most circumstances they only cover their Legal Liability and this will be limited in value – for example standard Road Haulage Association (RHA) terms are £1,300 per ton regardless of the type of goods carried. In addition, the cover is for Haulier’s Legal liability, so they may avoid liability if they were not legally negligent.

Assuming your claim against the haulier is valid, and covered in full, do you want to rely on their insurance policy? What if the policy has lapsed, or has clauses and warranties that the haulier has not complied with? Who is the haulier’s insurer going to work for in the event of a claim?

Speak to us today about your requirements and to ensure you are protected on the correct basis.

 

Carrier’s trading conditions

If you rely on carriers’ trading conditions you may not realise just how restrictive those conditions can be in terms of:


• The circumstances in which the carrier has to pay for loss or damage, and how little the carrier might actually pay in compensation.


These questions aim to highlight some of the potential problems and to demonstrate the benefits of buyers and sellers arranging insurance cover.

Terms of sale

Sales contracts generally incorporate internationally-recognised terms of sale known as Incoterms, which state:
  • Various obligations of the seller and the buyer
  • How various costs relating to the shipment are to be shared between parties
  • When risk in the goods passes from the seller to the buyer.
  • In particular, under two of the terms – CIF and CIP – insurance is arranged by the seller for the buyer’s benefit during the main carriage.

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 you 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 one 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.

Typical Limitation Figures

  • UK road haulage – RHA conditions GBP1.30 per kg
  • International road haulage – CMR SDR8.33 (about GBP9.09*) per kg
  • Freight forwarding – BIFA conditions SDR2.00 (about GBP2.20*) per kg
  • Carriage by air – Warsaw Convention USD20.00 (about GBP11.90*) per kg
  • Carriage by sea – Hague-Visby Rules SDR2.00 (about GBP2.20*) per kg

Global transportation solutions for a global marketplace

As goods cross borders by land, air or sea keeping control becomes increasingly difficult. Technological advances have also created high expectations by customers in terms of manufacture and delivery. Supply chains need to be protected from disruption and the negative impacts on customer loyalty, company reputation and cash flow. Globalisation has made trade with less developed countries a reality, where weaker logistics infrastructure and theft may pose threats to delivery.

 

Typical Claims

Live Directors & Officers news from across the web

on September 29, 2023 at 1:00 pm

During the attack, the group deployed several tools, most notably a newly-discovered sophisticated backdoor that ESET named LightlessCan

Lazarus luring employees with trojanized coding challenges: The case of a Spanish aerospace company

on September 29, 2023 at 9:30 pm

During the attack, the group deployed several tools, most notably a newly-discovered sophisticated backdoor that ESET named LightlessCan

5 of the top programming languages for cybersecurity 

on September 27, 2023 at 9:30 am

While far from all roles in security explicitly demand coding skills, it’s challenging to envision a career in this field that wouldn’t derive substantial advantages from at least a basic understanding of fundamental coding principles

Who to speak to?

Matt Price Cert CII

Please contact Matt Price, who heads our marine division, for all marine enquiries. Matt has been specialising in marine insurance for a number of years and would be more than happy to discuss your needs. Matt’s contact details can be found below or, if you would prefer, please complete the contact form at the bottom of this page and Matt will contact you at your convenience.

Broking Director
T: 01245 449060   E:matt.price@ascendbroking.co.uk 

Downloads

Marine Cargo Guide

Download our guide to marine cargo insurance