By Eric  Huang      Photo： Andrea Piacquadio，Link： Pexels

As a cargo owner, purchasing Marine Cargo Insurance can help you protect your cargo from any loss or damage.

Last week we talked about that good freight forwarding companies will have "international freight forwarder bill of lading liability insurance" to share the risk, but for the cargo owners, only buying marine cargo insurance for their cargos can really protect their own interests. Hence this week we will talk about this marine cargo insurance!

First of all, let's discuss what marine cargo insurance is. Marine cargo insurance, also known as transportation insurance or cargo insurance, protects your cargo from damage or loss during transportation. Marine cargo insurance is the lifeblood of international trade. As the popularization of internet allows more companies to easily participate in global trade activities, shippers need to be sure that their goods are properly protected by insurance. Marine cargo insurance covers any loss or damage caused by the transportation process between the origin and the final destination of the goods. In addition, it will cover the liability in case of damage or loss of the goods. In other words, ensuring that you have adequate marine cargo insurance can help you gain more trust from customers.

How does marine cargo insurance work? When you buy marine cargo insurance, it transfers all the responsibilities of you and other stakeholders to the insurance provider. In other words, as a cargo owner, purchasing insurance can help you protect your goods from any loss or damage. In most cases, international trade contracts usually contain a clause that the exporter must have marine cargo insurance. Therefore, if you are an exporter, you need to purchase marine cargo insurance to fulfill the terms and conditions of the trade contract, such as freight and insurance (CIP) or cost insurance and freight (CIF). 

Especially when a marine accident occurs, after the shipowner declares General Average, even if the cargo may not be lost or damaged, you still need to pay a security deposit and/or cash deposit to obtain the release of the cargo. In this case, your cargo insurance company will take responsibility and expedite the release of your cargo. General Average is an internationally recognized principle. If a certain type of accident occurs on a vessel, all parties share the loss equally, and this risk can be covered by marine cargo insurance.

Now that you have understood the basic content covered by the shipping policy, it is time to find a reliable partner. As with any other insurance policy or protection service, it is best to explore your options before thoroughly choosing a provider. Ask your freight forwarders if they have any suggestions. Call a friend or trusted business partner and ask him or her if he or she has experience in purchasing marine cargo insurance. The more information you collect about potential suppliers, the more likely you are to receive comprehensive coverage.

Before you ship your valuables cargos on sea, please understand the complete terms and conditions of your marine cargo insurance. Asking some simple questions about their claim process, the main coverage and whether your items will be covered if any loss or damage occurs. They are a key step in the transportation process.

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