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:
- Protect your business from significant financial loss if your goods are lost or damaged.
- Carriers operate under strict terms limiting their liability – so you cannot rely on them to cover costs if something goes wrong.
- 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.
- Carrier bankruptcies are not as rare as you think and can result in significant additional and unforeseen costs.
- The AlphaXO Risk Partners’ dedicated cargo claims service minimises your loss and inconvenience.
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.