Why you should insure your cargo during transport

Ocean carriers and logistics contractors do not typically cover the full value of your goods for loss or damage.

Five reasons to take out marine cargo insurance on your goods:

  1. Protect your business from significant financial loss if your goods are lost or damaged.
  2. Carriers operate under strict terms limiting their liability – so you cannot rely on them to cover costs if something goes wrong.
  3. General average – this tricky clause means if a ship gets into trouble you may have to pay a high percentage of the value of your goods just to receive them back from the shipping line.
  4. Carrier bankruptcies are not as rare as you think and can result in significant additional and unforeseen costs.
  5. The AlphaXO Risk Partners’ dedicated cargo claims service minimises your loss and inconvenience.

Additional notes

Insurance can start from as little as $100

General average – a company had $300k worth of Balinese goods on a ship that ran aground on the Great Barrier Reef. The resulting Average Bond of $142k to get back their goods was a scenario they had never envisaged.

Bankruptcy – The Wall Street Journal reported that about $14 billion worth of cargo was caught in transit on Hanjin ships when bankruptcy was declared.