What is Marine Cargo Insurance?

There are currently over 20 million shipping containers travelling around the world filled with a variety if items, it could be somebodies own personal effects or it could be the products of a large multinational company being shipped off from the manufacturers. During the journey to the final destination there is a large potential that something may happen to that container and the goods inside affected, the container turns up at the final destination the doors are opened and the items inside have been thrown about and are damaged. The potential loss could be catastrophic and have a serious financial effect on the owner of those goods, this is where Marine Cargo Insurance comes in. Insurers will agree to pay out claims for damaged goods in exchange for a premium that is fraction of the value of the goods.

One very common mistake for people shipping goods is that they think they do not need Marine Cargo Insurance because if any damage or loss does occur they will be able to recover any losses from the shipping company. This is only partially correct, yes money can be recovered from the shipping company for any losses, but due to trading terms and conditions in place most shipping companies will limit their liability by weight and will only pay back a fraction of the loss. The goods inside a container may have a very high value but only weigh a very small amount, should a claim occur the goods owner could lose a lot of money if Marine Cargo Insurance is not in place.

Another common mistake is that people look at the phrase ‘Marine Cargo Insurance’ and assume that this kind of policy only covers transportation via Sea, a Marine Cargo Policy can be made for goods being transported by Road and air too.

This type of policy can be done on a one off basis where cover is arranged as and when it is needed for each separate shipment or it can be done on an annual basis for those companies who tend to do regular shipments.

Don’t risk it, buy insurance!