A Guide to Ocean and Marine Cargo Insurance Companies
While most people do not realize it, much of the importing and exporting done
across oceans is done by boat instead of plane. This is because shipping cargo
across the sea is simply less expensive than shipping it by air. Shipping cargo
by sea has some unique risks, however, which is why cargo insurance is so important
as is choosing the right cargo insurance company for your needs. You should
not simply look at the cost of the insurance, but the extent of the coverage
Many cargo insurance companies offer plans for all types of cargo shipped
by any means. This can be great for larger companies that ship a wide variety
of cargo over land, air, and sea, but can have needless costs for smaller companies
that only ship specific items using specific means. Do you need to insure your
cargo up to a million dollars, or is it only worth a few thousand? Paying for
insurance that covers any dollar amount can be a waste of your money. Different
destinations also have different risks. Some cargo insurance companies will
insure your cargo to any destination, but if you only ship from New York to
England then this is not something you need. Insurance that covers shipping
to any destination will cost more because shipping to Malta may have different
risks than shipping to Italy, even though they are close. Another consideration
is whether you will be shipping domestically only, or internationally as well.
Shipping from one Eastern United States port to another is less risky than
shipping across the Atlantic, so your rates should reflect that.
Cargo insurance can be far less expensive than
using the carrier’s insurance.
In fact, you can save up to ninety percent by using primary cargo insurance
rather than the carrier insurance. Many cargo insurance plans are secondary
plans to the main boat insurance quotes that they will have got elsewhere, which means they only cover you if the carrier rejects your claim. You
may decide it is a good idea to find an insurance company that offers primary
coverage. This offers you full protecting in excess of what the carrier offers
on a claim.
When deciding on a cargo insurance company you should inquire about their
claims policies and response times. When a business loses a shipment it can
be a major hit to their profit and productivity. You need to get your money
back quickly so you can continue with business as usual. Filing a claim and
getting your return can represent a fair amount of time and work, but luckily
the United States Carriage of Goods by Sea Act in nineteen thirty six and the
Hague Rules that came before it make filing a claim pretty standardized in
most countries. Getting familiar with the United States Carriage of Goods by
Sea Act will give you an understanding of how to file a claim in the vast majority
of situations and countries.