So, here you are—ready for your next transportation of goods. But have you bought a marine insurance policy? If you are the one who thinks purchasing this policy is an extra expense that you don’t require, then it is time to think again. Here we have given seven reasons for buying marine insurance before your next journey :
1. Cargo theft is rising
There has been a rise in cargo theft, especially through identity theft and fictitious pickups. For instance, cargo theft is one of the main criminal activities in Canada which is costing an economy a loss of $5 billion a year. Then there are pirates’ thefts which are also one major risk of cargo theft and loss in international shipping. As it is shown in the film Captain Phillips, pirate attacks are alive! If you have marine insurance, the insurer may compensate you for any loss or damage, arising due to cargo theft. Most marine insurance companies offer add-on covers to include losses or damages that may arise due to strikes, riots,s, and commotion.
2. Containers loss at sea
Every year, more and more containers are lost at sea. As per the World Shipping Council surveys in 2011, 2012, and 2013 estimates, there were nearly 733 containers lost at sea on average. Considering the dramatic rise in the number of shipping containers lost at sea. It is necessary to go with marine insurance before you start your next journey.
3. Natural events occur
Natural disasters are beyond one’s control and therefore, they can strike anytime and cause you a multi-billion-dollar loss. Such incidents hamper the financial health of a company that has no marine insurance policy.
4. Cargo damages happen
Even if your ship is equipped with all the safety measures, cargo damage happens due to various reasons. Like the wrong selection of container, poor condition of the container, overloading, inadequate ventilation, ineffective sealing arrangements, overloading, etc. Though there are various reasons which can damage your cargo, you would have to incur financial losses if you have no Cargo insurance policy.
5. Legal requirement
In most situations, shippers’ sale contract also obligates them to purchase a marine insurance policy to protect the interests of buyers. If you fail to purchase a marine policy, you will not only have to incur financial losses. In case there is a loss or damage, non-compliance with the terms and conditions means you will also lose your buyer’s trust.
6. Carriers do not give complete coverage
By law, carriers are not responsible for all losses or damages like natural calamities, low average, etc. It means, that in those situations where carriers are responsible, there will be a restriction on the liability. Due to this reason, it is imperative that shippers should never depend on the carrier. Which is shipping their goods or services in case any loss or damage arises and purchasing a separate transit insurance policy.
7. Better control over the policy terms
If shippers leave the cargo insurance to the whims of the other party when importing or exporting goods, they are exposing themselves to the risk of underinsurance. Above this, if a claim arises that involves dealing with a foreign insurance company. Perhaps in a foreign language, it can be both time-consuming and frustrating. So, it is good to buy a marine insurance policy on your own.
Read More: 7 Reasons to Buy a Marine Insurance Policy if You are a Shipper
Further, you can take the help of corporate insurance advisors like SecureNow to buy marine insurance policies. By entering basic details about your requirements, you can get multiple policy premium quotes in a few clicks of the mouse. Moreover, in the case of any loss or damage, you can reach out to SecureNow who will assist you during the entire claim settlement process.
Those shippers who buy transit insurance policies themselves are in a much better state than those who rely on other parties to handle their marine insurance requirements.
Will you be able to bear the loss or damage if something untoward happens to your cargo? If you take more than ten seconds to reply to this question, then it’s time to buy marine cargo insurance. Remember, your business is the result of your efforts, and don’t let any unexpected situation hamper its growth. It ensures complete peace of mind as you know, in the case of any loss or damage, your insurer is only one call away.
About The Author
Simran
MBA Insurance and Risk
With extensive experience in the insurance industry, Simran is a seasoned writer specializing in articles on marine insurance for SecureNow. Drawing from 5 years of expertise in the field, she possesses a comprehensive understanding of the complexities and nuances of marine insurance policies. Her articles offer valuable insights into various aspects of marine insurance, including cargo protection, hull insurance, and liability coverage for marine-related risks. Renowned for their insightful analysis and informative content, Simran is committed to providing readers with actionable information that helps them navigate the intricacies of marine insurance with confidence.
