How many of us have heard the term marine insurance and are well familiar with that type of loss prevention? Although marine insurance was originally conceived in order to provide coverage for ships as well as cargo on oceangoing voyages, it evolved over the years to also cover vessels which carry goods transported either over land, water or air, as well as the cargo itself and land-based storage areas.
Broad Definition of Ocean Cargo Insurance
Because marine insurance has taken on such a broad area of coverages, what was once marine cargo insurance is now referred to as ocean cargo insurance. This includes the goods which are being transported over water, most often in terms of international transport. It is also quite specific to ocean going vessels. This coverage begins when the cargo leaves its place of origin and is in effect until the cargo is delivered to its destination, in other words from warehouse to warehouse over international waters.
Liability and Ocean Cargo Insurance
Ocean cargo boat trader insurance is protection against loss, either partial or total, that occurs while cargo is in transport. There are different types of coverage which include liability that protects the carrier against financial loss as well as coverage for the person or corporation shipping the goods. Not every ocean cargo insurance policy will provide for the same types of loss so it is important to thoroughly understand the insurance policy you are buying.
Typical Losses Covered
Most often you can find the same coverages from company to company. Typical ocean cargo insurance would insure against loss as a result of cargo being stranded, the ship sinking while cargo is in transport, the cargo burning as a result of fire and even loss of cargo due to a collision between vessels on the water. Someone shipping expensive goods between nations would also want to be covered in any event that loss occurred due to a fault or error in the management or operation of the vessel.
Quite often cargo is partially or totally lost due to water damage. This does not necessarily mean imaged by ocean water. Sometimes boilers burst and other times heavy weather exposes cargo to water damage from the elements. Other times there might be a defect in the hull or in the vessel’s machinery or there could be an explosion on the ship. Any time cargo experiences water damage it would be covered under certain types of ocean cargo insurance policies.
Other Types of Loss Covered
However, it is just the beginning of what can happen to cargo when in transport over the water. Sometimes cargo is improperly stored by the carrier and other times it is damaged by hook, mud or grease. Then of course, you need to take into consideration theft either in part or total theft. Sometimes your cargo just isn’t delivered and then there is pilferage, breakage and leakage. There are in fact so many ways in which cargo can be totally or partially lost during an oceangoing voyage that is always in your best interest to carry ocean cargo insurance.
There are a number of companies that specialize in ocean cargo insurance and the best way to find a policy that has the coverage you need at a price which is reasonable is to do some comparison shopping. Whether your shipment is worth $100 or $1 million, it is always wise to insure that cargo. You can find ocean cargo insurance quotes online so that you can choose both the policy and premiums that make sense to you. While you are free to choose the company you wish to buy ocean cargo insurance from, one thing is for sure. Never ship cargo between nations without insuring against loss.
Total Loss Coverage:
1% value of the boat + freight
Goods being shipped are insured for a total loss/total damage to the entire shipment resulting from any of the following risks during transit:
2) Overturning or other accident
to the truck, train, boat or plane.
6) Sprinkler leakage
8 ) Hurricanes
11) Collapse of dock
This is catastrophic coverage. Must be a Total Loss (Total damage) to the entire shipment caused by any of the 14 covered perils listed above.
All Risk Coverage:
1.5% value of the boat + freight
Goods being shipped are insured against All Risks of physical loss or damage (partial & total loss) resulting from any external cause while in transit (door to door); including extended coverage for Loading and Unloading, War, Strikes, Riots, Civil commotions, Duty, Theft and Non-delivery of any portion of the shipment (individual items and/or the entire shipment). Subject to the Standard terms and any applicable special commodity terms and deductible listed below.
This is the Broadest All Risk coverage available anywhere, subject to very few exclusions which are standard in every cargo policy and considered to be rare; such as terrorism, nuclear events, radioactive contamination, delay in transit, improper/unsuitable packaging and willful misconduct by the insured.
Deductible: Yachts, Boats and Watercraft: Each boat trader claim is subject to a 5% (minimum $500.00 USD) deductible of the insured value of the entire shipment.