The inland transit insurance offers coverage against loss or damage which may damage the insured goods, finished goods, and raw materials during transportation under the contract of affreightment.
If you are looking for the right inland marine insurance policy, here are some tips that you can follow –
- Evaluate your needs – When it comes to buying the right insurance policy, it is essential to carefully assess and evaluate risks. There are two types of inland marine insurance policies-
- Specific Policy: It is issued for a specific It means the coverage will come to an end once the transit is complete.
- Open Policy: It is useful to cover the inland movement of consignment for a specific duration, which is usually one year. The inland marine insurance policy suits a policyholder who has to undertake various transactions throughout the year.
With the help of the open policy, the policyholder can enjoy automatic and continuous coverage.
As per your business needs, you can choose between a specific policy and an open policy. Further, if required, you can expand your inland marine insurance cover with add-on covers to get coverage against risks, like strikes, riots, civil commotion, etc.
Then the right inland transit insurance policy gives you an option of customization in the following ways-
- All Risk Cover: It covers goods against all kinds of risks.
- Limited Extension Cover: It gives extension cover against perils like violence, riots, strike, civil commotion, etc.
- Basic Risk Cover: It includes fire or lightning risk cover only
- Check the loss settlement process – The most crucial difference between various policies is whether the loss or claim settlement is on the basis of the ‘Agreed Value’ or ‘Actual Cash ‘
The ‘Agreed Value’ policies are those which usually pay the limit as mentioned in the policy document when there is a complete loss. Similarly, the actual cash value policy settles the original claim after deducting depreciation.
The agreed value policy usually costs more, but they offer wider coverage. On the other hand, actual cash value policies are apt for an owner who is looking for an economical alternative with low coverage. With limited money, it is worth going with the actual cash value.
When choosing inland marine insurance, check the claim settlement process.
- Shop around– Are you the type of person who purchases the first thing they see, or you are the one who takes time in shopping around? Though various insurers are offering inland marine insurance policies, the extent of coverage may vary from one insurer to another. Therefore, instead of going with the first option that presents to you, it is necessary to carefully compare and then choose the right inland marine insurance policy.
- Have an annual policy review – As your business grows, your liabilities also increase. No one wants to be caught unprepared when a natural calamity strikes. So, at the time of renewal, carefully review your inland marine insurance policy to ensure it is in sync with the current scenario.
- Understand exclusions – While you know that inland marine insurance offers coverage against various incidents, it is equally necessary to know what is not covered in the policy.
Your inland marine insurance policy claim can be rejected by the insurer if losses or damages occur during the loading/unloading of goods. Similarly, if losses or damages happen because of inadequate packaging, the insurer has all the right to reject the claim.
In the end, we strongly advise you to buy inland marine insurance as it all comes back to the old saying, “Better to be safe than sorry.
Let SecureNow help you with the inland transit marine insurance!
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