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 marine insurance is an extra expense which you don’t require, then it is the time to think again. Here we have given seven reasons of buying marine insurance before your next journey=
- 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 billion a year. Then there are pirates’ thefts which are also one of the major risks of cargo theft and loss in the international shipping. Like it is shown in the film Captain Phillips, pirate attacks are alive! If you have a marine insurance, the insurer may compensate you for any loss or damage that may arise due to cargo theft. Most of the marine insurance companies offer add-on covers to include losses or damages that may arise due to strike, riot and commotion.
- 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 an average. Considering the dramatic rise in the number of shipping containers lost at sea, it is necessary to go with a marine insurance before you start your next journey.
- 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 who has no marine insurance policy.
- 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 marine insurance policy.
- Legal requirement= In most of the situations, shippers’ sale contract also obligates to purchase a marine insurance policy to protect the interests of buyers. In case you fail to purchase a marine insurance 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.
- Carriers do not give complete coverage= By law, carriers can’t be held responsible for all losses or damages like natural calamities, low average, etc. It means, 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 purchase a separate marine insurance policy.
- Better control over the policy terms= If shippers leave the marine cargo insurance on 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 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 to SecureNow who will assist you during the entire claim settlement process.
Those shippers who buy marine insurance policies themselves are at much better state than those who rely on other parties to handle their marine insurance requirement.
Will you be able to bear the loss or damage if something untoward happens to your cargo? If you take more than ten seconds in replying this question, then it is the time to buy marine cargo insurance. Remember, your business is the result of your efforts and don’t let any unexpected situation to hamper its growth. A marine insurance policy ensures complete peace of mind as you know, in the case of any loss or damage, your insurer is only one call away.
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