If your business is expanding exponentially and you are beginning to deliver or receive international shipments via cargo ship, plane, or truck, then it’s time to get an Ocean Cargo policy. Transporting goods has its own set of risks and Ocean Cargo insurance is structured to reduce your business’ exposure to financial loss.
What is Ocean Cargo Insurance?
Ocean cargo insurance covers goods in the ordinary course of transit from warehouse to warehouse. The policy is specifically written to compensate the exporter/importer for damage to their products, which may include but are not limited to, consumer goods, chemicals, food products, machinery, metals, pharmaceuticals, and other perishables.
While an ocean cargo policy is not typically a required insurance policy, it is highly recommended to protect yourself and your business. This is a proactive way to protect the value of your goods and products from physical damage, theft, or general average.
What does Ocean Cargo Insurance cover?
Goods insured: Shipments of all lawful goods and/or merchandise, as agreed by the carrier, subject to the terms and conditions of the policy. Coverage may include shipments by air, land, and sea as well as goods at exhibitions and salespersons samples.
Warehouse to warehouse: Depending on the terms of sale, the ocean cargo policy is designed to cover the goods at the point of origin during the shipment and inland transit through final delivery at the buyer’s facility.
General average: In the event the captain orders cargo to be jettisoned for the safety and best interest of the vessel and crew, the remaining shippers of record will be required to contribute to offset the losses.
Cost of Ocean Cargo Insurance
The cost of obtaining insurance through a freight forwarder on a shipment basis is typically more expensive than obtaining their own annual ocean cargo policy. There are a few factors when determining the cost of an ocean cargo insurance policy:
- Types of goods being shipped. Perishable goods are more likely to be damaged or lost during transit and would therefore have a higher rate
- Geography. The location of where they are being shipped from and where they are being delivered to are determining factors
- Storage requirements, limits, and location of warehousing facilities
- Optional coverages
Ensure Your Business Is Protected
Cover your business and products from all angles by acquiring ocean cargo insurance. This is just a quick overview of why having an ocean cargo insurance policy can be vital for your business. At Biscayne Risk & Insurance Group, we have helped protect import/export operations for decades. We can analyze the risks and costs of obtaining ocean cargo insurance and build the right policy for you and your growing business. Having the right insurance policies can save you financially from a devastating loss. We understand that business shouldn’t be done at your own risk. It’s important to work with a firm that has the experience to know the unique exposures that come with shipping goods internationally. Call us today to get started on curating the perfect policy for your needs.