Marine Cargo insurance is an integral part of transportation since anything can happen to goods while in transit. Goods could be damaged in a storm or fire, be stolen or simply be mishandled or lost from their origin in your warehouse to their final destination. Marine cargo, or Shipper’s Interest Cargo Insurance and inspection of all goods in transit are the smart solution to protect against a financial loss.
Professional inspection services are critical whenever the custody of goods transfers between buyers, sellers and traders. Inspection occurs during critical transportation, custody transfer and storage operations.
High value bulk commodities, which includes crude oil, chemicals, fuels, grains, and many other products are measured, analyzed and verified for shipment and inventory quantity and quality. Inspectors then survey and sample representative product from bulk storage tanks, tankers, cargo ships, barges, rail cars, shore storage and transfer facilities and warehouses in order to determine if the goods are being stored and facilitated properly.
What is an all risk cargo insurance policy?
All-Risk Cargo Insurance is perhaps the broadest form of coverage available. It provides first-party protection on approved general merchandise for loss or damage to cargo from external causes. An easy way to think of “All-Risk” Cargo Insurance is that everything is covered, except what’s excluded.
In order to compete in today’s transportation industry, freight brokers are being asked by their shippers, consignees, freight-forwarders and 3PL’s to guarantee payment on cargo claims. Unfortunately, motor truck cargo insurance will not cover freight loss or damage including Default Act of the Shipper, Act of God, or Act of Infidelity, to name a few general causes.
In addition to providing coverage for any loss or damage, marine cargo insurance also pays for the costs to minimize a loss and pays for damage inspection. Some shippers may believe they can rely on the carrier, but that is not always the case since most carriers have limited liability in regards to such matters and are provided legal defenses, which absolve them entirely of any financial responsibility. Cargo insurance pays covered claims without the need to prove fault.
Marine cargo insurance and inspection is the best line of defense for shippers that have obvious concerns where the transportation of goods is at stake, and any loss can have a dramatic affect on their bottom line.