Why is cargo insurance necessary?
During transportation goods are exposed to the risk of damage or loss. Irrespective of whether transport is via road, rail or air, the carrier’s liability is always limited – usually per kilo.
In case General Average (GA) is declared, the cargo insurance warrants to cover the cargos part of General Average salvage costs by issuing an average Bond. In case there is no cargo Insurance the Cargo owner has to provide a Bank Warrant / Payment Bond or other security accepted by the GA Adjuster that shows payment is secure.
Who needs Cargo insurance?
There are terms of delivery in purchase agreements, such as FOB or CIF. The term of delivery determines whether it is the buyer or vendor who is at risk regarding damage to the goods and therefore may arrange for goods insurance. Therefore, we can offer a cargo insurance that covers the damage/loss of goods in the event of a claim on full terms ICC (A) clauses if integrated into the customer contract.
What does the insurance compensate?
The goods insurance compensates the full value of the damage to the goods that can occur in transit. For example if the vessel is lost, a goods vehicle drives into a ditch, breakages and losses by theft in transit, transshipment storage as well as loading and discharging.
Doesn’t the carrier have any liability for claims and insurance cover?
The carrier has insurance cover, but only for the liability stated by law and transport liability conventions and there are clear statutory rules governing the carrier’s liability for the damage to and loss of goods. It may often be limited or excluded so even if a carrier is liable for loss and/or damage caused to the goods during transport, such liability may be unsatisfactory for the customer. As a principal rule the goods owner should insure his goods and the carrier his liability.
Which insurance conditions are applied?
Where import and export are concerned, the English ICC conditions (Institute Cargo Clauses) A, B or C are employed. Usually the A condition (All-risk).
What affects insurance premiums?
There are many factors that affect premiums, such as goods type, packaging, transport mode, destination etc. In general, however, one may say that the premium for packaged goods is of the order of magnitude 0.1-0.7 % of the stated insurance value.
How do I get it?
Just contact us and we will provide you a cargo insurance solution.