life preserver on beach marine cargo insurance

A Simple Guide to Understanding Marine Cargo Insurance

For most consumers, buying the protection plan is an immediate, hard, “no.” Shoppers quickly calculate the risk of damage to their new purchase and decide it’s not worth the extra cash. This fuzzy and rushed math performed at the cash register might be fine for a new beach stereo, but it’s probably not good enough to determine the safety and protection of your business’s entire inventory for September. If you think about Marine Cargo Insurance as a protection plan, you’re in trouble. For small to medium-sized companies, loss and damage to goods can destroy a bottom line.

Many freight carriers offer per pound or per item coverage, which sounds like an effective idea. However, what happens when your 1,000-pound solar panel – which is worth $1,200,000 – is only covered for a few thousand dollars? Purchasing additional freight coverage can mean the difference between growing your company and shuttering your doors. Protecting your investment with Marine Cargo Insurance will keep your company on the right path forward.

 

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What Marine Cargo Insurance Covers

elephant umbrella what marine cargo insurance covers

Simply put, Marine Cargo Insurance covers your goods for any loss or damage while in-transit on the ocean. While each policy might vary on the details, the main point of ocean freight insurance is to protect you and your company from suffering revenue.

There are a few different types of cargo insurance policies which you should consider. Check out this great list of the kinds of freight insurance over at the Cerasis blog (another excellent resource for shippers and logistics professionals). Knowing which type of policy best suits your business requires knowing your full scope of work, and the risks involved in your specific move and industry.

Since Marine Cargo Insurance covers goods over the ocean, it protects your bottom line against fire and loss. It even covers damage due to weather. The hurricane season is upon us, and with recent storms pummeling the seas and costs of Hawaii, extra protection against the treacherous winds and rain is an excellent idea for any business. Rough seas can cause damage to items from being tossed and jostled around inside containers.

Protect your assets from the start. There are small things you can do to lessen the risk of damage to your goods. Properly packaging your freight before it begins its journey will go a long way in safeguarding against loss.

Marine Cargo Insurance Providers and Resources

ship in water marine cargo insurance providers & resources

Now that you know the basics of what a freight policy covers, it’s time to find a partner. A quick Google search will yield plenty of potential providers for Marine Cargo Insurance. Like any other insurance policy or protection service, it is best to explore your options before choosing a provider thoroughly. Ask your ocean freight carrier if they have any recommendations. Phone a friend or trusted business associate and asked if he or she has any experience with procuring Marine Cargo Insurance. The more information you gather on your prospective supplier, the more likely you are to be fully covered.

Inbound Logistics Рwho made our list of top resources for international freight Рprovides shippers with a great tool for finding marine cargo insurance.

Understand your freight provider’s full terms and conditions before you ship your valuable merchandise over the ocean. Asking a few simple questions on their claims process, their primary coverage, and whether or not your items will be covered if any loss or damage occurs is a vital step in the shipping process. A great provider will let you know up front if they think you should seek out additional Marine Cargo Insurance.

 

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