Marine Cargo & Goods In Transit Risks
Despite the name, Marine Cargo insurance is a form of Goods in Transit Insurance which covers transportation of goods and merchandise by sea, rail, road or air. It is vital that any business importing or exporting products and even transporting goods within the UK looks at protecting their products and goods.
Did You Know? Hauliers don’t insure your cargo; only their liability for loss or damage. In the event that cargo is damaged whilst the haulier is transporting it and assuming the haulier is negligent (therefore, liable), the compensation they pay is controlled by their contract conditions, such as RHA Conditions of Carriage 2009. So, even if two tonnes of cargo is worth £10,000, they will only be liable to pay £1,300 per tonne under standard RHA conditions, leaving you significantly out of pocket. Cargo insurance prevents such shortfalls.
Marine cargo risks are usually insured on the Institute cargo clauses A, B or C. The different clauses cover different risks with the fullest protection being offer by Cargo Clauses A and the least by C. Specialist cover is required for non standard or project cargo.
Cover should be tailored to your shipping requirements and can also include cover whilst the goods are being loaded and unloaded and stored in ports and warehouses
Marine cargo insurance is a specialist area and it is vital that you obtain good advice from your brokers to ensure that your coverage protects your cargo and mirrors your contract of sale/purchase whether that is CIF, FOB, DDP or a variety of others.
If you are the owner of goods being transported it's important that you understand what cover is afforded to you by you logistics company and whether you need additional cover. There are a variety of laws and international conventions that limit liability of carriers and therefore you may not have cover for the full value of your cargo.
Whatever your journey or cargo looks like, we’ll help you make sure your goods are protected.