31 May 2021 • 4 min read
Marine Insurance 101: Everything You Need to Know
Wondering how Marine Insurance will protect your cargo? Check out this article to know more about marine insurance and how it can benefit you.
Cargo, when transported around the world is faced with many risks, regardless of the shape and size. Be it the weather or human error, cargo loss is revenue lost for exporters and importers. This is where marine insurance will be crucial. Marine insurance will typically insure losses against physical damage to cargo on the move or in storage.
But what is marine insurance exactly? In many ways similar to regular insurance, marine insurance is designed to meet the needs of the shipping industry. It helps to protect against loss or damage of cargo including the cost of moving it, or liability to a third party occurring during a shipment. It can be extended to cover losses on inland transport either by inland waters, road or rail.
How will marine insurance offer protection for your cargo? Marine insurance policies tend to cover commonly defined packages. If you are looking for a fully comprehensive cover you may need what is called “Institute Cargo Clause (All Risks) – ICC (A)” which pretty well covers every risk you’re like to encounter. The alternative is to look for a plan that lists out specific risks that will be covered. And these come in two main varieties. ICC (B) covers a long list of named risks or perils such as fire, ship loss, unloading in the wrong place when your ship gets into trouble and the usual natural phenomenon such as earthquakes and volcanic eruptions.
You would also likely be covered for things such as water getting into your cargo or your contained being lost at sea for whatever reason. The third, and simplest cover, - ICC(C) focuses on disasters such as explosions, fires, lost ships or jettisoned the cargo. There will be times when different levels of cover seem appropriate and you will be able to decide what works for you on any given consignment. Importantly, a shipper and consignees need to be very aware on a case by case basis what level of cover they have brought as there are considerable differences between the policies that are on sale.
Obviously the policy will include the full terms that govern your contract but you may want to check the exact meaning of terms such as General Average - is a useful [website](http://www.duhaime.org/LegalDictionary/Category/MaritimeLawDictionary.aspx) full of maritime legal terms. With the right insurance protection, not only will your cargo be well protected, your investment in your cargo, and protection will be well rewarded. In the event that your shipment is lost, marine covers ensure that you do not lose out completely on the revenue you would have earned through the lost cargo.
Moreover, you will have peace of mind, knowing that your cargo is well protected in the event of any eventuality that could occur. So check out the insurance being offered by providers on the Cogoport’s platform and enjoy the protection of your shipment with ease. Looking to sign up with Cogoport’s service?