Logistics form an essential part of our global economy. Facts say that India’s logistics industry is most likely to touch $215 Bn by 2020. It facilitates trade by fulfilling consumer demands as per their expectations. Particularly for overseas logistics businesses, there are several challenges and risk factors associated with the transportation of cargo overseas. If you too are running a logistics business, you can relate to it.
Take the case of unpredictable storms and high tides. You can’t predict when the weather would become unfavourable while your cargo worth millions are in transit. Nature’s wrath can cause extreme loss to you if you are not prepared to deal with it.
Worry not, as there is marine transit insurance to your rescue. Let’s take a brief look at what this type of insurance covers.
What is Marine Insurance?
It is a type of insurance that provides coverage for loss of cargo and damage caused to ships while goods are in transit. It is known to safeguard the insured against transportation-related losses.
What’s in it for people like you who are into the logistics business? Why do you need marine transit insurance?
Well, your business and marine insurance are connected in more ways than one. It’s almost a match made in heaven.
We tell you how.
Importance of Marine Insurance for Logistics Businesses
While running a shipping corporation or a logistics business on a small scale, you also want the related risks to be minimized to avoid financial loss. At your end, you can ensure the safest packaging of goods to prevent any damage when in transit. However, you have no control over the natural hazards that can cause significant financial loss to you. Despite keeping a tab on safety regulations, you can’t prevent certain damages. All the businesses whose goods you are transporting in the ships will then come to you to ask for compensation in case an unexpected event occurs.
Marine transit insurance is crucial for your business because it prepares you to deal with such a situation. The chosen insurer will be there to back you up and extend a hand to offer financial help.
You might have recently started offering logistics services to a diverse clientele on a small scale, which is why you might not have given much importance to buying the right marine transit insurance till now. However, there are several reasons why buying this policy is crucial for your business.
What Does Marine Transit Insurance Have for Your Business?
Complete Protection Against Loss
While transporting cargo containing your clients’ goods, different types of loss or damage can occur. For instance, a storm in the sea can cause damage to the goods in transit, maybe only partially. Similarly, events like cross-border shootouts can cause a total loss of goods.
One reason why buying marine transit insurance for your logistics business makes sense is that it offers comprehensive protection. It offers expansive coverage for a partial or total loss of goods while the goods are in transit. Alongside this, you can even opt for inland marine insurance to get coverage for offshore delivery of goods.
Easy to Customize the Policy
No two logistics businesses need the same marine transit insurance policy. It can be because of the differences in their scale, annual turnover, specific clientele, coverage limits, and many other factors.
So, you can choose a policy based on your business-specific needs and pay its premium accordingly. As your logistics business grows, you can even scale up the coverage limits of your marine insurance policy as required.
Safeguards Your Profits
The marine industry terminology defines a portion of your profit as ‘markup’ value. When you buy a marine transit insurance policy, you also get this value covered under the policy’s terms.
You may be wondering what that means.
Well, it says that the chosen insurer will compensate for this mark-up value to ensure your business stays profitable.
As the wise men said, there is no wrong time to start doing the right things. If you have been struggling to select the right marine insurance policy as and when required, choose SecureNow. We will help you get the policy that fits your budget and covers your logistics business completely.
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.
