Ocean Cargo Insurance, sometimes called Marine Insurance or simply Cargo Insurance, provides broad physical damage coverage to goods while in transit. Typically coverage is arranged on ocean going voyages from foreign ports to U.S. ports, but can also include shipments sent by air cargo as well. Reverse flow of good shipped from the U.S. to anywhere in the world can also be insured on an Ocean Cargo Policy.
In addition to the primary ocean voyage, coverage can be customized to include inland transit for goods being trucked or railed from the point of origin to the ship and from the ship’s destination docking location in the U.S. to your warehouse or your customer’s warehouse.
Optional coverages that can be built into the policy:
· Domestic transit coverage (truck or rail) from your warehouse to your retail locations or the locations of your customers.
· Warehouse storage – permanent or temporary storage locations
· Exhibition coverage for trade shows
· Salesman’s samples
Who needs Ocean Cargo Insurance?
· Any company that has goods being shipped to or from overseas locations.
· Any company that distributes goods within the U.S. and or Canada.
· Any company that currently is purchasing insurance from the shipping company or freight forwarder.
If you currently purchase insurance through the shipping line, your freight forwarder, or from your supplier as part of your invoice, you can likely do much better with your own cargo policy, here’s why:
Coverage from the Shipper / Freight Forwarder / or your Supplier:
· is EXPENSIVE! On average up to FOUR TIMES more expensive than your own cargo insurance!
· Coverage is LIMITED – You do not know the terms and conditions of their policies which often are inadequate and limited. Having your own policy means you can customize terms and conditions to fit your specific needs.
· Poor Claims Service – in the event of a claim, a Shipper’s or Forwarder’s policy is adjusted through the shipper or forwarder – not you. This slows down claims handling, limits communications, and usually results in poor recoveries. Having your own policy gives you DIRECT access to your adjustors and loss surveyors.
Our advice is that YOU, the insured, should always be in control of your own terms and conditions and coverage. To delegate that to the shipper (or anyone else) puts you at a disadvantage where you lose control.
For more information on Ocean Cargo Insurance, please contact us!