You may be surprised to learn that the home-field advantage doesn’t really apply to the U.S.
Of course, risks also exist on the high seas. Containers and their goods are damaged every day while in transit, not to mention statistics show that every importer will be involved in a General Average case once every eight years. With the risks on the high seas and those on your home turf, TRG Marine suggests you take a look at your cargo insurance policy and review your coverage.
Types of Marine Cargo Insurance
Annual All-Risk Policy
An all-risk policy cargo insurance policy 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. Theft and General Average are covered. This is the way to go, more coverage with better rates.
Annual Name Perils Policy
Named perils policies will list what is covered under the policy. These policies will not cover theft! Make sure to read through your policy for missing coverage.
Shipment – by – Shipment (Through a carrier)
If you are insuring your goods shipment-by-shipment, you are most likely not covered for:
- Acts of God – e.g. heavy weather, earthquake, lightning, fire etc
- Acts of war – acts of strikes, riots or civil commotions
- Latent defects in the hull or machinery
- Criminal acts or negligence by the master or crew
- Unseaworthiness of the vessel
C+I+F
The seller owns the goods until they are loaded onto the vessel. The selling price includes all costs so far, plus the costs of the cargo insurance. Language barriers can become an issue with CIF. The insurance company providing coverage is overseas, and when a claim must be mitigated, the importer must deal with the overseas provider.
Watch the Cost, Insurance, Freight (CIF) Webinar
View the Webinar Slides Below
