Cargo Insurance for your business

Competitive insurance quotation to cover your international and UK cargo

We can provide you with policies for individual sendings or annual policies to cover all your imports and exports in one year.

Don't rely on the importer or exporter to arrange your insurance.
If you are sending goods abroad or importing, don't assume that the insurance will be arranged by the other party. Rather than rely on a suppliers' insurance or an unknown overseas insurer, it can be prudent to organise the insurance yourself. This way you can deal with an insurer in the UK that speaks your language and it means that you are in control of the claim and not relying on someone else.

Goods travelling around the world face a range of perils. If things do go wrong goods owners cannot depend on conditions of carriage for compensation, which may limit the liability of the shipper, haulier or airline, or even exclude it entirely.

Without your own cargo cover, you may be left to swallow the financial loss yourself.

Combined Stock & Transit Insurance (Stock Throughput Insurance)

This type of policy can cover raw materials and finished goods from the time your company assumes
responsibility and until they are delivered to the final customers destination. The Cover under a stock throughput policy would include all storage, packing, transits and distribution.

Ring Paul on 0116 284 6092 for advice and a quotation

or complete our marine insurance enquiry form

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Cover options

Loss or damage to your goods can be covered under a marine insurance policy. This can cover the journey over land as well as at sea. Lloyds of London is the most common form of marine policy in the UK . In addition to the basic contract , various clauses can be added to cover to suit the individual needs of your business.

Institute 'A' clauses

These provide the widest cover and is the most expensive. These clauses cover most risks other, for example, wars and strikes. However the war and strike risks can be reinstated by adding the  appropriate clauses.

Similar clauses are used for goods sent by air.

Institute 'B' and 'C' clauses

These clauses provide cover for a number of risks on a 'reasonably attributable' basis - meaning that the responsibility for damage or loss can be reasonably attributed to a particular party.  There is less cover provided under the 'C' clauses, which is usually reflected by a lower premium.

The following risks are covered under Institute 'B' clauses but not under Institute 'C' clauses:-

• earthquake volcanic eruption or lightning
• washing overboard
• entry of sea lake or river water into vessel craft hold conveyance container liftvan or place of storage,
• total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft

General average

Standard marine insurance policies cover claims under general average. This applies when some of the cargo is lost or damaged whilst trying  to salvage a ship in distress. All cargo owners are to collectively compensate the cargo owner that  loses out in such circumstances.

e.g. Cargo may sustain water damage during fire fighting.  If General Average is declared, all the parties involved must contribute to the loss.

Acts of God and acts of war

Carriers aren't liable for acts of God (i.e. unforeseen  acts of nature)  or acts of war  or piracy under international law.  If you send goods to a region where piracy is common , it is recommended to add this additional cover.

Terrorism

Terrorism is usually excluded - this cover can be added which is will incur an additional charge.

 

Responsibility for the goods during international transit - an explanation from Northern Marine Underwriting

A key component in understanding marine cargo insurance is having an appreciation of who is responsible for the goods at any point during an international transit.

Published by the International Chamber of Commerce, the Incoterms rules allow buyers and sellers to transact business with the certainty that each understands its obligations in relation to:

1. the point at which the risk of loss of or damage to the goods passes from the seller to the buyer, and
2. which party bears various costs associated with the shipment.

The risk transfer point (a), also called the delivery point, is important in relation to marine cargo insurance underwriting and claims, because it is a factor in establishing insurable interest. (Another factor is title; but the Incoterms rules do not deal with payment or the passing of title.)

The latest sets of rules are the 2010 rules and for those familiar with the previous 2000 version the main changes are:

Less Focus on the Port-to-Port Delivery Terms
To reduce the misuse by sellers of the FOB, CFR and CIF delivery terms, which are generally not appropriate for containerised, multi-modal and non-maritime shipments, the delivery terms are now separated into two distinct groups:

Terms for any method of carriage, including maritime shipments

EXW		Ex works
FCA		Free carrier
CPT		Carriage paid to
CIP		Carriage and insurance paid to
DAT		Delivered at terminal
DAP		Delivered at place
DDP		Delivered duty paid

Terms applicable to port-to-port shipments only

FAS		Free alongside
FOB		Free on board
CFR		Cost and freight
CIF		Cost, insurance and freight

Fewer Delivery Terms
To streamline the delivery terms, and to better cater for the practicalities of multi-modal traffic, the total number of delivery terms reduces from thirteen to eleven: a new term, DAP, replaces DAF, DDU and DES, while DAT replaces DEQ, making an "unloaded" term available for non-maritime shipments for the first time.

Demise of the Ship's Rail
Where the FOB, CFR or CIF delivery terms are used, the rules now specify that risk passes from the seller to the buyer when the goods are "on board". This replaces previous reference to goods "passing the ship's rail", which is not appropriate for many methods of loading.

 

Open the following document to read an introduction to the insurance needs or importers and exporters from Northern Marine Underwriting
Insurance_needs_of_importers_and_exporters.pdf