Marine Insurance: A Curtain Raiser on General Average

General Average is nothing but another name given to general loss. It applies when something untoward happens to a ship carrying cargo. Every cargo owner, along with the carrier company, becomes responsible for their and other’s cargo and the vessel when General Average is declared.

Common examples are fire on-board, the vessel getting stranded or grounded because of machinery breakdown, shifting of cargo in bad weather risking the ship’s stability, or any other life-threatening situation caused due to circumstances beyond control. When these extraordinary situations happen, the captain or the shipping company may opt for jettisoning some cargo or do some emergency repair entailing damage to some cargo for saving the crews and the voyage.

In such cases, the cargo owner not only loses the goods, he also has to share a part of the general loss. The amount may go up to even millions of dollars and only insurance coverage can save from such perils. The Insurance provider gives bonds and arranges contributions for the loss incurred.

This article by ICE Cargo covers what is Marine insurance and helps in buying one

Marine Insurance: Is It Worth It? (A Guide That Will Actually Help)

Over 90% of the world’s trade is transported by ocean freight. This equates to over 10 billion metric tons of cargo moved each year around the globe. For the most part the container shipping industry provides a cost-effective and safe way of transporting goods. In most instances, your cargo will arrive on schedule and in the condition you expect. Shipping, however, is not without associated risks. Read more here!

Marine Insurance can provide a wide range of coverage

Almost 75% of the earth’s surface is full of water and the ocean route happens to be mostly used for export and import by all nations. While the cargo reaches the destination port safely and on time mostly, this shipment route is not free from risks. The vessel voyages through the vast ocean for days covering different parts of the world. And, sometimes the ship has to combat bad weather and high waves.

There are safety regulations and the ships religiously follow them. But things like inclement weather, pirate attacks, collisions, border conflicts, cargo damage are common in marine transport. Because of such high stakes, there is a wide variety of marine transport insurance.

They include hull insurance, machinery insurance, P&I insurance, liability insurance, FD&D insurance, freight insurance, and marine cargo insurance for different needs and one can also have different types of policies. Marine Insurance is a complex subject and one must have a thorough understanding of the coverage needed for shipment to mitigate losses from untoward incidents.

This article by Marine Insight explains Marine insurance coverage in detail and what are all the things you should keep in while buying one.

Different Types of Marine Insurance & Marine Insurance Policies

The subject of Marine Insurance is very wide and encompassing, which is why there is a definite categorization of various types of marine insurance and different types of marine insurance policies. As per the needs, requirements and specifications of the transporter, an appropriate type or types of marine insurance can be narrowed down and selected to be put into operation. Read more here!

How Marine Insurance Work?

Insurance is an integral part of international business these days. These are great to protect the valuable goods of the owners. As the name suggests, marine insurance is associated with sea trade. Other than relating to businesses done through ocean transport, it also covers other transport for movement of goods. Marine insurance covers a lot of things from loss or damage to the vessel and cargo and has a wide area of application. Marine transportation is a complex and risky process and it depends on several factors including circumstances beyond control.

As a result, several risks are associated with marine transportation and this is where marine insurance comes in. When one purchases marine insurance coverage, it transfers the liability to the insurance provider. It covers many perils like loss and damage to the cargo, injuries, pollution, or contamination. The loss is compensated after assessing the fault and covers both cross liability and single liability.

This is mostly obligatory through the export contract and the liability is limited to the provisions of international conventions.

This article by Trade Finance Global explain how Marine insurance works and the types of it.

Marine Insurance – Marine Insurance Explained

Marine insurance is a must for ship owners, shipping corporations, and cargo owners to protect their interests. Here is all you need to know about marine insurance and the various structures. Marine insurance offers coverage for any damage or loss related to ships, cargo, terminals, transports, or transfer. Simply put, a marine insurance policy will cover any loss or damage surrounding the boat or watercraft. Read more here!

Essential requirements of a quality cargo insurance provider

Although no one likes, risks of losses, damages, claims are almost an inevitable part of transportation. But the claim settlement could either be slicing through the cake or turn into a nightmare based on the cargo insurance provider and the coverage chosen.

Plenty of insurance providers are out in the market offering cargo insurance and all claiming to be the best. This makes finding the right cargo insurance provider a challenging task. One needs to do a lot of research for this.

It has to be kept in mind that charging the highest premium does not necessarily mean that the cargo insurance policy will provide the best possible coverage. The basic thing is one needs is an insurance provider who takes care of the freight. While looking for the right insurance provider one must check if the provider offers varieties of flexible policies for different needs.

They should also offer coverage for all risks during transit of the cargo. Moreover, they must have qualified insurance experts for easy navigation through the claim settlement process.

This article by Chrobinson highlights the importance of cargo insurance and its benefits.

What is Cargo Insurance and Why Is It Important?

Transporting goods around the world is not without certain risks. And if you’ve ever shipped something internationally, you realize just how many things could go wrong while goods are in transit. That’s where cargo insurance comes in. Read more here!

Cargo Insurance: Different types for international shipping

Because of the highly competitive market, small and medium scale enterprises are also now forced to look beyond the country shore. It has become essential to survive the competition from the big brands in their similar business.

This is why international shipping is needed for bridging the gap with the offshore markets for getting an extensive customer base. And, for this, the SMEs need to have Cargo Insurance for financial security against losses. But losses can be of many types and so the insurance coverage. One should opt for all-risk insurance coverage for international shipping.

They cover losses caused by many factors including Cargo abandonment, customs rejection, improper stowage, negligence, strikes, riots, War, etc. Opting for named peril insurance is another option. These policies pay for what is exactly covered.

This usually includes damages due to collision of vessels, sinking, inclement weather, theft, burning, and non-delivery. An SME can also consider getting a General Average option for avoiding liabilities in case of invoking a general average claim.

This article by Business Articles Hub presents the different types of international shipping.

The Importance of Cargo Insurance for International Shipping

Cargo insurance is a necessary preventative measure in today’s globalized market. With customers’ expectations at an all-time high, cargo insurance provides SMEs with financial security, if goods are damaged, lost, or stolen during transit. Insurance coverage varies according to the type of policy.

While every shipping carrier provides insurance, the scope of this coverage varies; therefore businesses are advised to buy additional coverage to ensure their goods are secured with a comprehensive insurance plan. Read more here!

What is the cost involved for Cargo Insurance?

Business and transportation are intimately related. And when it comes to the movement of goods from the place of origin to another destination, it is always associated with a risk of damage, loss, or theft. This is why Cargo insurance is a must for domestic and global insurance.

Unfortunately, there is no one-size-fits-all type of cargo insurance. As the nature of the cargo and the mode of transportation differ, different needs arise and that ask for different cargo insurance coverages. This is why the premiums for cargo insurance vary so widely. Several factors influence the premium rate. First is the type of cargo.

If it is a high-value cargo or a high-risk cargo, the premium rate will be higher.  Deductibles are also responsible for fixing the premium rate. Paying more out of pocket attracts a low rate. Last but not least is the amount of additional coverage. Plenty of cargo needs tailored insurance coverage during transit because of its sensitive nature. They attract higher premiums. 

This article by UPS Capital explains the various cost and factors involved in Cargo insurance premium.

How Much Does Cargo Insurance Cost? 3 Factors Driving Your Cargo Insurance Premium

The global economy is flourishing. Economy experts on trade policy confirmed United States trade with foreign countries amounted to $5.6 trillion in 2018, making it the third largest exporter and second largest importer in the world. This growth is encouraging and opportunity continues to feed the competitive nature of today’s markets. But with growth, comes risk. According to the World Trade Organization, risk lies at the very core of increasing trade and could potentially threaten economic growth and confidence.

Consequently, businesses are prioritizing protection for the transportation of their goods with services like cargo insurance. So, how much does cargo insurance cost? Read here for more!

Cargo Insurance: What is it?

Transportation of goods around the globe is associated with certain risks. As carriers hardly guarantee safe delivery, there is always a risk of loss or damage. This is where cargo insurance comes in. It is the way to protect consignments from physical damage and theft or pilferage during their movement from one place to another.

Getting cargo insurance means that the goods are protected for their value against any potential losses that may occur because of any external cause during transportation of the same through the air, road, rail, courier, registered post parcel, water transportation. It is a vital element of domestic and international trade.

There are different types of cargo insurance for air, land, and sea transportation. Land Cargo Insurance policies are for all land transportations. They cover theft, collision damages, etc. Marine Cargo Insurance policies are three types; open cover cargo policy, specific cargo policy, and contingency cargo policy. All cargo Insurance policies cover the risk during the usual course of transportation and end on delivery of the goods.

This article by Cerasis explains what is Cargo insurance and why you need it.

Cargo Insurance: What is it, What are the types, & Do I Need it for My Shipment?

Following up our announcement that we have negotiated lower cargo insurance costs and now offer a zero deductible for that cargo insurance, we thought we’d take a deeper look at freight insurance (also known as cargo insurance). Specifically, what is cargo insurance, and should shippers even request it. Read more here!

Cargo Insurance: Why you need it

Almost everything can go wrong during transportation. They get exposed to losses because of various risks like accidents, damages, theft, losses, improper stowage, fire, shipwreck, etc. Once the goods leave the origin, the owner has no control over the consignment, although he has to suffer for the losses.

Also known as Freight Insurance, Cargo insurance is essential, necessary, and vital for protecting a consignment from potential losses and damages during transit. No one is going to compensate the losses if goods are sent without coverage from a cargo insurance policy. This may mean a loss of business and livelihood. As goods vary in nature and the coverage needed.

It is, therefore, imperative to know the nature of the goods to be insured and their mode of packing. Some cargo insurance policies also cover losses and damages caused by war, rebellion, etc. One should be certain of the risks to be covered and the various categories of cargo insurance policies available before nodding for anyone.

This article by Shipping and Freight Resource gives in-depth knowledge about Cargo insurance and its benefits.

All you need to know about Cargo Insurance and why you need it

Marine insurance is the oldest form of insurance in the world with its roots going back to the 9th century BC. This was the start of what has developed into what we today know as general average. The first actual marine policy goes back to 1347. When it comes to the placing of any insurance it is necessary to have an insurable interest in the cargo. Read more here!

Cargo Insurance has many benefits

In this area of globalization, people are sending their cargo across the world through the surface, air, and sea transports. While the land and air transports can be used for domestic and international shipments, marine transports are used for international shipments only. Whatever may be the mode of transport, they are always some risks involved.

Cargo Insurance ensures protection of investment and covers the value of goods for loss, damage, or delay due to external causes. When goods are not covered under a cargo insurance policy, they are handled, moved, and stored at the risk of the consignee, owner, and shipper. As such, it is always best to get cargo insurance for domestic and international shipments.

The premium paid for purchasing a cargo insurance coverage is an investment that indemnifies the cargo and ensures peace of mind as the goods leave the place of origin. Cargo insurance includes simplified ways of reporting losses and prevents unforeseen stoppages of cash flow through an efficient settlement of claims.

This article by Freight Pros explains the need for cargo insurance, types, and what is covered.

What is Cargo Insurance: Benefits, Types, & Coverage

When your freight is in transit, it is prone to risk that can damage or cause the loss of your shipment. If a shipment was lost at sea because the container ship sank, the carrier liability is usually not enough to cover the value of the freight. If your truck was involved in an accident, you just lost two assets — your truck and your goods. That’s why it’s important to consider cargo insurance for your freight. It allows you to save time and money if your cargo is lost or damaged. Read more here!