Marine Cargo Insurance
Marine Cargo Insurance
Most businesses will be aware that marine cargo insurance provides cover on cargo, but, of course, it can extend to include insurance arranged on the hulls of the vessels.
Most people seeking information about marine cargo insurance cover will be looking to protect their goods whilst in transit by road, sea or air, or in storage during the course of the journey, so we are concentrating on this type of cover.
Whenever marine cargo insurance cover, also known as cargo insurance, is arranged, the underwriters will want to know how the goods are packed so that they can be satisfied that they can withstand the rigours of the journey.
The key to any marine insurance cover is the contract of sale between the seller and their customer and this will make it clear where the liability passes from one party to another. The major categories are as follows:
- Cost, Insurance and Freight (CIF) – The customer will buy the goods including delivery to their premises and the seller is responsible for arranging the insurance cover from their warehouse to the purchaser’s warehouse.
- Free on Board (FOB) – Here both parties have to arrange cover as liability passes from the seller to the buyer as the goods cross the ship’s rail during loading.
- Ex-Works – The buyer is responsible for arranging the cover for the whole journey. In these circumstances, it is recommended that the seller has a contingency cover to provide protection in the event that the purchaser does not arrange appropriate insurance.
Turning now to importers, the contract between the two parties will be similar to that shown above but the importer will become the buyer/purchaser.
A useful tool for importers is the stock throughput policy which provides cover from cradle to grave. The policy covers the imports, whilst they are in store and final delivery to the customer in the UK or overseas. This can prove to be a very good way of achieving premium savings and should be seriously considered by importers. The storage location could be a conventional warehouse or maybe a bonded warehouse where special consideration has to be given to the cover for duty.
We touched upon the other side of marine insurance cover in the opening paragraph concerning the insurance cover on hulls. We have specialist markets for this type of cover and welcome any enquiries you may have.
Give us a call on 01204 364 842 and talk to our experienced team about your marine cargo insurance cover requirements.