A Simple Guide to Understanding Marine Cargo Insurance | Approved Freight

For most consumers, purchasing the protection plan is an immediate and resounding “no.” Buyers quickly calculate the risk of damage from their new purchase and decide it’s not worth the extra money. This confusing and rushed math done at the cash register might be fine for a new beach stereo, but it probably isn’t good enough to determine the safety and security of your entire business inventory for September. If you think of marine cargo insurance as a protection plan, you’re in trouble. For small and medium-sized businesses, property loss and damage can destroy the bottom line.

Many carriers offer coverage by the pound or by the item, which sounds like an effective idea. however, what happens when your 1,000 pound solar panel, worth $1,200,000, is only covered by a few thousand dollars? Purchasing additional transportation coverage can mean the difference between growing your business and going out of business. Protecting your investment with marine cargo insurance will keep your company on the right track.

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what does marine cargo insurance cover

In a nutshell, ocean freight insurance covers your goods for any loss or damage while in transit over the ocean. While each policy may vary in detail, the main purpose of marine insurance is to protect you and your business from suffering revenue.

There are a few different types of cargo insurance policies you should consider. Check out this great list of cargo insurance types on the cerasis blog (another great resource for shippers and logistics professionals). Knowing which type of policy best suits your business requires knowing your full scope of work and the risks involved in your specific movement and industry.

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Because ocean freight insurance covers goods over the ocean, it protects your bottom line against fire and loss. it even covers weather damage. Hurricane season is upon us, and with recent storms pummeling hawaii’s seas and coastlines, extra protection from treacherous winds and rain is a great idea for any business. rough seas can cause damage to items being thrown and pushed into containers.

Protect your assets from the start. there are little things you can do to reduce the risk of damage to your property. Properly packing your cargo before your journey begins will go a long way in protecting it from loss.

ocean cargo insurance providers and resources

Now that you know the basics of what a freight policy covers, it’s time to find a partner. A quick google search will turn up many potential providers for marine cargo insurance. Like any other insurance policy or protection service, it’s best to fully explore your options before choosing a provider. ask your ocean carrier if they have any recommendations. Call a trusted friend or business associate and ask if they have any experience purchasing marine cargo insurance. the more information you collect about your potential provider, the more likely you are to be fully covered.

Inbound Logistics, featured on our list of the best resources for international shipping, provides shippers with an excellent tool for finding ocean freight insurance.

Understand the full terms and conditions of your freight forwarder before shipping your valuable cargo across the ocean. Asking a few simple questions about your claims process, your primary coverage, and whether or not your items will be covered in the event of loss or damage is a vital step in the shipping process. A large provider will let you know in advance if they think you need to look into additional marine cargo insurance.

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