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Annual Cargo Insurance from TRG Marine



TRG
Marine Cargo Insurance FAQs



Q: What is an all risk cargo insurance policy?
A: An all-risk cargo insurance policy is the broadest form of shipping insurance and will cover any physical loss/damage from any external cause. An all-risk policy will list any exclusions that are not covered, which can be added on to the policy as an additional clause. An annual open cargo policy automatically insures your shipments on set terms, conditions and rate without the need to contact your insurance broker or company each time.

Q: What is a marine cargo insurance buyer’s contingency policy?
A: When the terms of sale include insurance coverage up to the title transfer of goods, the buyer may purchase additional insurance from an insurance provider known as a contingency policy. A contingency policy will provide insurance coverage for the goods once the title has transferred and the goods are no longer covered under the seller’s insurance policy. Should the goods be damaged upon arrival to the buyer and the title has transferred, the policy would pay the damage and the buyer’s insurance company would subrogate against the seller’s insurance. TRG Marine™ writes contingency policies.

Q: What does basis of valuation CIF + 10% or 110% valuation mean?
A: The standard valuation for both annual volume reporting and payment of cargo insurance claims, unless otherwise requested, is 110%. This means that the total premium owed is calculated using the policy rate times 110% of the total cost of goods, and any covered losses are paid at 110% of the cost of goods, freight and insurance premium of the shipment, less deductible.

Q: Is warehouse coverage included in an annual all-risk policy?
A: An annual all-risk shipping insurance policy does extend to goods temporarily stored during the normal course of transit. However, if goods are stored outside the normal course of transit, Warehouse Coverage may be added. Example: goods being stored in the importer’s warehouse pending shipment to the customer.

Q: What is domestic cargo insurance coverage?
A: If goods on a bill of lading are split during the normal course of transit and continue to separate end destinations, domestic coverage can be added to the policy to cover those goods.

Q: What is the Lloyd’s of London marine cargo insurance market?
A: Serving over 200 countries and territories, Lloyd’s of London is known as the premier marine, truck, rail and air cargo insurer in the World. Often misunderstood, Lloyd’s is not an insurance company but is a society of members who underwrite in syndicates on behalf of investment institutions, specialist investors, international insurance companies and individuals. Lloyd’s provides 44% of its business in the United States and Canada.

History: Dating back to the 17th century, Lloyd’s began after realizing the cargo insurance needs of International traders. Today the Lloyd’s market insures some of the largest and most complicated risks. From celebrity body parts to plasma televisions, from sporting events to financial firms, millions of people are in one way or another covered by Lloyd’s.

Q: What is TRG Marine’s™ relationship with Lloyd’s of London.
A: TRG Marine™ is your direct access to the insurance power, capacity and expertise of Lloyd’s of London. TRG Marine™ has a direct relationship with Vectura Underwriting, a Lloyd’s Coverholder. A Lloyd’s Coverholder, such as Vectura Underwriting, specializes in niche insurance sectors. Vectura’s market expertise works on our behalf to negotiate competitive terms and conditions for TRG Marine™ cargo insurance policy holders. TRG Marine™ works hard to present you with a policy offering the best coverage at the lowest price.

State Regulations & Licensing: TRG Marine™ is a trade name of the Corporation for International Business – dba Boomerang Freight Solutions Insurance Agency in the state of CA, dba Corporation for International Business, Inc. in the states of CT/MA/MO/NM, and dba CIB Insurance Agency, Inc. in the states of FL/MD/NH.

Q: Does a TRG Marine™ policy have a minimum annual premium deposit?
A: Yes. The insured will make an annual deposit upon binding of a policy. The minimum annual premium with annual adjustment available on a TRG Marine™ policy is $1,550.

Q: What is a standard cargo insurance deductible?
A: $1,000 is the standard deductible. However, deductible options are available upon request for a rate adjustment. Please allocate your deductible on the designated field within your quote request.

Q: How is TRG Marine’s™ quote so much lower than my current providers?
A: Lloyd’s of London has been around for over 300 years. This experience brings greater understanding, further market relations and added intelligence to your specialized risk. The diversity of the cargo insurance market leaves your business insurance agent scrambling to find a policy to “fit within a box”. Without access to cargo insurance specialists, your insurance agent will most likely find this policy to be “out of the box” and thus charge a much higher rate than you would be charged with TRG Marine™.

Q: What do I do in the event of a cargo insurance claim?
A: In the event of a cargo/shipping insurance claim, TRG Marine™ works as a liaison between you and the insurance company. Our years of experience and dedication to assisting our customers provides you with excellent support and guidance. Read TRG Marine’s™ step-by-step guide to claims mitigation.

Q: What if I already have a cargo/shipping insurance policy?
A: Often times your current policy lacks the broad coverage that is offered by TRG Marine™. TRG Marine™ has negotiated very favorable terms with our cargo insurance carriers and would be pleased to offer you a free, no obligation comparison. Also, TRG Marine™ helps handle your claims and generally acts as your insurance department. TRG Marine™ arranges cargo/shipping insurance in volume, which means our rates and terms are very competitive. Again, there is no obligation and it costs you nothing to give us a try.

Q: Doesn’t my transportation carrier pay my losses?
A: They do not unless you purchase specific cargo insurance from them, in which case the coverage provided is usually insufficient and ends up costing you more. Transportation carriers are not obligated to pay for your losses that occur beyond their control. Also, international law limits the liability of ocean carriers to a minimum of $500 per package. Air carriers similarly limit their liability and truckers, rail carriers, and warehouse owners limit their liability for loss according to their tariff.

Q: What if I cannot find a company that will insure my type of risk?
A: Our volume here at TRG Marine™ is much greater than yours so we have the ability to arrange contracts that you may not be able to. Even if we fail, which is unlikely, it costs nothing to get a quote.

Q: My goods are not at risk so why should I get marine insurance?
A: It is possible that your goods may be less prone to loss or damage than others, but you still run the risk of a ship sinking, a plane crashing, or some other catastrophic event. It is important to keep in mind that a ship sinks every single day according to maritime statistics. In addition, you are vulnerable to General Average losses. A recent study concluded that a shipper will be involved in a General Average incident once every eight years. This could potentially lead to a business ending situation without a cargo insurance policy.

Q: What if Cargo insurance is too expensive for my company to purchase?
A: Before you come to this conclusion, let’s take a look at your volume, and utilizing our buying power, we can see just how much it’s going to cost. At the very least, if you currently have a policy, we can review it and suggest ways it could be improved. It costs you nothing to obtain a quote or advice from TRG Marine™.

Q: I always sell C. & F. or buy C.I.F., why should I change?
A: There are some major issues with buying on CIF terms. The first problem with buying on CIF terms is that the importer has to deal with an overseas insurance company when a cargo insurance claim occurs. The chances are you are not a valued client of that insurance company, and even if the language barriers are not a problem, which they often are, getting the insurance company’s attention to take care of business, is a challenge. Secondly, foreign insuring terms are frequently inferior to US terms. In addition, if you sell goods C.& F., then technically you, being the seller, have title and responsibility for the goods until they are loaded onto the ship or aircraft. As losses frequently happen in transit before they are loaded onto the ship or aircraft, it is not wise to allow them to go uninsured.

Q: Why should I purchase Cargo Insurance through TRG Marine™ when I already purchase it through my Freight Forwarder?
A: Often times the policy that you have through your FF is often on limited insuring terms (sometimes referred to as perils only) and not sufficient for your needs. In addition, in almost every case, the premium rates are higher with your FF than could be arranged elsewhere. Along with higher premium rates, your FF will mark up their rate to you so as to create an additional corridor for them. Do not forget that Freight Forwarders are logistics experts, not insurance experts, and cannot provide the best advice and services. Further, a forwarder’s house policy is generic because they handle a multitude of customers. Here at TRG Marine™ we are able to build a Marine Cargo Insurance Policy that will fit your needs.

Q: How do I get a quotation for an annual all-risk cargo insurance policy?
A: It’s simple! You only need to fill out a quote application. You can do so online or call us and we will walk you through the application over the phone. Once we have a completed application, it only takes 2-3 business days for us to respond with a quote.

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Trade Risk Guaranty (TRG) Brokerage Services LLC is a licensed insurance agency, having agency agreements with Hanover Insurance Company of Worcester, Massachusetts and Hudson Insurance Company of New York, New York, both of which are insurance companies approved by the Department of the U.S. Treasury to issue U.S. Customs bonds.

Our Florida marine policies are written by our sister agency, Corporation for International Business – dba CIB Insurance Agency.
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