A little while ago, we looked at what we mean by ‘marine transit insurance’, and touched briefly on the kinds of risks that it can provide protection against. Here, we’d like to look at these risks in a little more detail, to further demonstrate the importance of marine transit insurance for both big businesses engaged in regular shipping and individuals who are transporting cargo on a one-off basis. Here are the main five risks that your cargo could potentially face, and which marine transit insurance can protect you against.
1. Theft – Depending on the nature of your cargo, it could be a particularly attractive target for thieves. If your goods are exceptionally valuable, there is an increased risk that there are organised criminal elements on the lookout for such a cargo, and who have the resources to steal it regardless of the security measures you or the shipping agent put in place. On the other hand, less valuable cargoes can also fall prey to more opportunistic thieves, either from the outside or from within the transit chain itself. In both cases, you should make sure that your marine transit insurance covers you for the theft of your cargo.
2. Damage/ destruction of cargo – Whether by accidental incident or by deliberate action, your cargo is vulnerable to events which may result in its damage or destruction during its journey. Such events range from the outbreak of a fire in the cargo hold of the ship, to malevolent vandalism directed specifically towards your cargo at any stage of its transit. Regardless of the intention behind it or the exact nature of the damage, marine transit insurance can prevent you from bearing the financial cost of the aftermath.
3. Loss of cargo at sea – This is of course a risk that is inherent to sea and ocean-based transportation. Regardless of any qualities your cargo may have that render it relatively indestructible or protection that you place around it, there is always a chance that the vessel transporting your cargo may capsize, taking your goods or property with it. Though this is less likely today with the many safety measures, technologies and regulations that are in place, a sufficient level of marine transit insurance can protect you financially against this possibility and give you peace of mind.
4. Damage caused by improper handling by a third party – If your cargo is particularly delicate (such as might be the case with antiques or ornaments) or if it has very specific storage requirements, then naturally you want the shipping company to take the utmost care with it and to transport it with full respect of your wishes and stipulations. However this may not always be the case, and accidents can occur through incompetence, inadequate attention and unfortunate circumstance.
5. Piracy – In most areas of the world, piracy is no longer an issue and is a risk that you can generally disregard when shipping your cargo across the world. However there are some regions of the globe where piracy is all too commonplace, most notably in the seas around Somalia, and if your cargo is passing through these areas then you would be well advised to ensure that your marine transit insurance covers you for loss or damage caused by marine piracy.
Park Insurance is an experienced broker that has been providing cost-effective insurance policies for marine transit and other business needs for more than twenty years. Get in touch to discuss your needs or to obtain a quote for marine transit insurance.