10 REASONS FOR
MARINE CARGO INSURANCE

The cost of losses arising from physical damage to goods in the event of an accident during transit can run into hundreds of thousands of pounds. Marine cargo cover protects a business from these costs.

A marine cargo policy will typically cover goods against a wider range of perils than a goods in transit policy. It may also provide extensions such as control over the disposal of branded goods.

A haulier will restrict their legal liability for damage caused to goods whilst in their control, with strict limits often stipulated by their trade association. So even if damage is their fault, the compensation available will often be insufficient.

A marine cargo policy can provide cover for goods before and after transit whilst being kept in a warehouse or other storage facility.
 

Whether under an all risks policy or a more traditional marine cargo policy, war and terrorism cover is usually included as standard, so a business doesn’t need to purchase separate policies.

A clothes retailer imports a shipment of children’s clothing by sea from the Far East for sale in their UK stores. Whilst in transit, the cargo ship suffers a collision which damages some of the cargo, including the retailer’s shipment. The cargo has to be offloaded, temporarily stored and then reloaded on to a new vessel to complete its journey to the UK. The marine cargo policy covers the damage to the clothing, as well as the costs incurred in the additional storing and reloading of goods mid-journey, ensuring the business can continue trading with minimal financial impact.

If a vessel is at risk of being lost, part of the ship or cargo may be sacrificed to prevent a total loss. General average dictates all parties contribute to the loss, and cargo insurance ensures a business’ contribution is covered.

If cover is only required for a one-off trip, a business doesn’t need to purchase an annual policy. A single trip policy means a business will get the cover it requires, only when it’s needed.