When you are involved in the business of exporting or importing goods from multiple countries, you know the financial implications of losing the cargo in transit due to any reason whatsoever. In the worst-case scenario, loss of goods because of theft, an overturning of the cargo vessel, etc. can even lead a company to dissolution, which is where the concept of commercial insurance comes in between. It provides insurance coverage for the goods in transit till the cargo reaches its destination. Therefore transporters should consider safeguarding goods during transit with comprehensive Warehouse to Warehouse Marine Insurance coverage.
But if you closely look at the journey of goods during transit, it starts from the manufacturing house, then reaches an intermediate warehouse owned, managed, or hired by the transporter before the goods are loaded on the vessel, followed by the warehouse delivery at the destination. At a surficial level, the risk related to the goods in transit persists even when the goods are stored/kept in the warehouses.
Do you know whether your marine insurance policy also works as a warehouse insurance policy? Let’s find out.
What is Warehouse-to-Warehouse Insurance?
Warehouse-to-warehouse insurance is basically one of the types of marine insurance that provides cargo coverage during storage at one warehouse or the other during transit. As the name suggests, this policy extends the protection of goods from the warehouse where the shipment originates to the one where it terminates.
In the market, you will either find a stand-alone warehouse insurance policy or an additional clause/provision to the marine insurance policy. Separate coverage is quite essential to insure your goods before and after the transit.
Warehouse Insurance Importance Explained
Warehouses provide storage for all cargo, making warehouse insurance crucial for short and long-term protection. Depending on the business needs, the storage duration may vary from a day to a few months or more. Additional services offered at the warehouse include packing, pickup, cargo delivery, and unpacking of goods.
Loss or damage in custody can result in significant financial loss. Warehouse-to-warehouse insurance safeguards goods in authorized storage, offering protection within freight insurance.
Opting for the appropriate warehouse insurance policy shields your business from transit-related unforeseen events.
You should also know that:
- Commercial insurance may provide one-time coverage or an open policy that covers all shipments within a specific period. Whenever shipping is involved, there are standards for commercial insurance coverage ownership. In some cases, they can be segmented by location, destination, or warehouse to warehouse. Hence, it is important that you check the clauses of a warehouse insurance policy to understand the extent of coverage.
- The warehouse-to-warehouse insurance clause may also define the upper limit on the amount payable in case of any mishappening. You are advised to check that limit beforehand.
Real-World Example to Help You Understand Warehouse Insurance
Consider a chip manufacturing company in China that manufactures and sells chips used in electrical devices to businesses all over the world. Due to valuable chip consignments, the company collaborates with insurers for transit coverage, safeguarding expensive goods enroute to buyers.
With a warehouse insurance policy, the chip company would pay a certain premium to insure the chip consignment for any loss or damage from the time it leaves the manufacturer’s warehouse until it reaches the buyers’ warehouses. This will also include intermediate transportation via truck, boat, or any other mode from ports to the buyer’s warehouse.
Commercial insurance is crucial for your supply chain, managing goods distribution effectively in production. In large-scale distribution, sellers manage insurance and shipping costs; warehouse insurance becomes significant.
Buy Warehouse Insurance from SecureNow Today
Buying commercial insurance, especially Warehouse to Warehouse Marine Insurance, demands understanding and comparing policies, ensuring comprehensive coverage across different facets. With SecureNow, a leading insurance broker in India selling B2B insurance products, you can compare and buy marine insurance online. For more details, click here.