Your business is expanding to the overseas markets; or maybe you have bagged a large order which needs to be shipped overseas. Whichever way it is essential to buy the right marine insurance policy, which will help provide you the necessary protection for your ocean and air shipments. But it is also important to note that as International Ocean and air shipments are subject to a unique set of laws; marine insurance policy is also unique compared to other insurance policies.
So to ensure you get the right policy; here are five things you need to know before getting a marine insurance policy.
Why is it necessary?
While shipping goods internationally has become much safer and efficient than ever before; life is uncertain and accidents may happen; also there are numerous reasons in which freight can get easily damaged while being shipped. This is very risky especially if you are just expanding your business and everything depends on the shipment; having a good marine insurance coverage will at least reduce the stress a little bit; by protecting you in case of any damage to the goods.
Who does it favor more?
Not the shipper or the consignee; international shipping laws actually favor the carrier; this is because it helps promote trade between two nations. Hence damaged goods will eventually be the shipper or consignee’s responsibility and to protect you from risk it is important to take utmost care in packing the goods as securely as possible before sending them off for shipping.
Can the policy be tailored?
The best part about the policy is that most marine cargo insurance policies can easily be tailored in keeping with your particular type of exposure. Also unlike most insurance policies which have strict underwriting procedures, the underwriting process for marine insurance is less rigid and can easily be custom made to match particular risks which you consider your goods may be more exposed to.
Does an all-risk policy actually cover any accident?
As the name suggest it is easy to mistake that an all-risk policy will automatically cover all accidents concerning your goods. However this is not always the case and it is necessary to minutely read the policy terms and comprehend it completely. Usually such a policy lay out specifically what it will not be covering and generally incidents not mentioned in the all-risk policy are generally considered to be covered.
How much to share with insurance company about goods?
In marine insurance it is necessary to disclose the complete nature of the goods; this is because if you need to make a claim later due to damage of goods; being dishonest about nature of the goods could hamper the process. Being completely transparent about the nature of the goods is the only way to go with marine cargo insurance companies. You need to disclose to the company all details like- type of item, mode, dollar value and any other necessary and essential facts which could influence the final assessment of risk by the underwriter.
Finally there are many other questions which may run through your mind before you buy an insurance policy; such as whether the claim will be settled overseas or in your location, if you are paying duty on insurance as it has been added to the price of goods and maybe this is not actually required and so on. Hence it is always better to get expertise advice from insurance companies for instance companies like SecureNow and other insurance advisors who possess valuable expertise and know-how in guiding the exporter on the different types of clauses available while buying the policy.