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If you’re involved in shipping goods internationally, then Marine Cargo Insurance should be on your list to review, as it provides important cover that you would definitely not want to be without if anything unexpected were to happen. 

You’ll find listed below eight reasons to buy a Marine Cargo policy from an insurance professional who fully understands this type of insurance. If you have any questions, just call our friendly team at Prizm Solutions to help you decide if this is the right cover for you. 

1. Accidents Happen 

In life and business, accidents happen, which is why it’s so important to protect your goods. Goods in transit can face numerous risks, including storms, collisions, theft and even piracy. Marine Cargo Insurance helps protect your investment in these purchases, helping you avoid significant financial losses.

2. General Business Insurance May Not Be Enough

Your company's general insurance policy may not extend to goods in transit. Marine Cargo Insurance is specifically designed to cover these risks, providing coverage for physical damage or loss during transit.

3. Don’t Rely On The Carrier’s Policy

A common misconception is that carriers automatically insure the cargo they transport. In reality, carriers may only have limited insurance, which often doesn’t cover the full value of your goods. Marine Cargo Insurance provides the comprehensive coverage that carrier policies do not. Furthermore, in the event of a claim, YOU are in charge of your own claim rather than having to speak to the carrier’s insurers.

4. Limited Legal Liability

In cases where goods are damaged during transit, the law typically favours the carrier, not the shipper or consignee. Marine Cargo Insurance ensures you're adequately covered regardless of legal liability.

5. Know your Shipping Terms

CIF, FOB and Ex Works are just three examples of terms used, but have you any understanding of when you assume liability for damage to your goods? A marine cargo policy arranged on the correct basis will ensure the goods are insured as soon as they become your responsibility.

6. Salvaged Goods

Even if you get the good news that the ship has been saved, and your goods are safe, there's still bad news. Under standard shipping terms you will have to pay a percentage of the value of the goods as a salvage reward, but your insurance policy can cover this too.

7. Be Careful With Descriptions

When it comes to buying Marine Cargo Insurance, different types of goods have different levels of risk. Make sure you accurately describe your cargo to the insurer to correctly identify the nature of your goods, as inaccurate descriptions can affect your coverage.

8. Goods in Storage

If you have goods which you store in someone else’s warehouse, we can arrange ‘Stock Throughput’ insurance which covers them whilst they are there, even though you have no direct control over the building or its security. 

If you need any help with Cargo (Goods In Transit) Insurance or any other business insurance cover, such as Public Liability Insurance or Professional Indemnity Insurance, please get in touch, we’ll be happy to help.