Stock for a manufacturer, trader or importer is the essential part of the business. Safeguarding the stock, thus, becomes the task all of the parties involved in the trade must take seriously. At times accidents do happen, and some stock could be rendered useless or even lost to the nature. Such circumstances can be devastating to the stakeholders of the trade unless there is a mechanism present to reduce their losses and provide sufficient help to ensure the continuation of trading activity.
Export-Import Insurance, among the multitude of plans available to traders, is customized for the parties involved in international or cross-border export or import of the commodities. Any damage to the stock while movement is covered under this policy.
Exim policies, also known as Marine Cargo Insurance, are a type of marine insurance and thus contain many features of a marine policy especially the ones provided below:
- Easily Transferable
- Types of perils covered
- Types of assets included
- Modes of Transportation
Keeping in mind different needs of traders, insurers offer various types of plans. For example, Open Cover policies are issued to regular dealers for their convenience. Some common types of Export and Import Insurance are:
- Traditional International Insurance:Various classes of risk are accepted worldwide. Also, maritime and some policy providers also insure strike perils.
- Precise Loss Evaluation:Most insurance providers follow traditional regulations related to the total and average of losses.
- A varied range of policies:Export and Import Insurance is further classified into other policies. Some of them are Specific, Open and Sales Turnover policies:
Specific Policy: It is a policy that is only applicable till the time goods reach their destination.
Open Policy: This is specially made for a regular trader. It covers all trade for a specified period (usually one year).
- Quick Cover-note Provision:Generally, it takes some time to get the However, some insurance providers can get it done in hours. The cover note also includes bills and LC particulars.
These are some of the key features offered under the export and import insurance policy by the policy providers. However, some exclusions may be present as well:
- Not covered Perils: Damage due to the earthquake or warehouse damage is not included in the import and export policies. It will depend on the plan you have opted.
- Perishable Products: If the products have a very short shelf life and are prone to spoil on their own without any external forces, the damage is not covered under the policy. For example, oils solidify, and coal myself-combust, all this causes much loss but might not be recovered. However, some expert guidance may save or reduce you from incurring losses.
- Improper Packaging:It is always advisable to keep a proper check on the packaging. If any damage happens because of improper packaging than the claim gets immediately rejected.
Overall, Export and Important needs a good amount of money, and the products need to be safely transported. However, if something unfortunate happens, it becomes difficult to handle suddenly. However, with the availability of this insurance policy a person can trade without stressing about the cash need in the event of loss of goods.
Some additional covers can be added to increase the coverage. For example, temporary storage risks (FOB), war or riots (SRCC). This may require additional premium payment.
Now the question arises, where to pick the best policy from?
It is suggested to do a thorough study of the policies and then pick the one that seems to be the best for the business. The Internet has a lot of information regarding different insurance policies and regulations. Online agents also help to pick the best one. There are many advantages of selecting the insurance online like – smooth processing, easy documentation, comparable quotes from multiple insurers, and constant support.
SecureNow offers you all this and24x7 chat support for continuous help as well.
A proper research of policies, comparison, and selection of the best from the lot is the way forward to safeguard your interests in your export or import business. After all, the business activities take and make a significant amount of money but the premium needed to be safe at the time of mishaps is small.