It is safe to say that losses during transport are already a regular occurrence. Most of the time, these losses are caused by several circumstances such as maritime piracy that continues throughout the waters, goods getting damaged by weather, cranes puncturing containers, vessels capsizing and colliding and also, containers shifting and falling overboard. When this kind of situation arises, this will lead to the safety of the products traveling internationally and domestically to get compromised. And because of this, you will find many shipping companies to have their marine cargo insurance to cover costs, theft of goods and losses as well while in transit.
The thing is that direct damages are not as significant a problem as indirect losses because it is the indirect losses that will directly target your company’s bottom line. Always bear in mind how maintaining the direct loss will help in the offsetting of the impact of the direct losses.
These days, it is already apparent for very shipping companies out there who have their marine cargo insurance. There are so many policyholders out there who are not ensuring their goods in the most cost-effective way possible. What many of us do not know is that a marine cargo insurance can provide full coverage for the cargo of the clients in the event that it got physically lost or damaged, offering much better option for them on the reliability of the carrier’s insurance. Not only that, we want you to know as well that marine cargo insurances play an unintended role in the protection of assets for the intermediary. This can be said when the intermediary extends credit terms to a client, assuming the role of an unsecured creditor. Albeit the fact that you are a credit-worthy cargo owner, when you get affected by a massive, uninsured loss, this will lead to your ability to settle debts to get compromised. When things turn for the worse, the uninsured loss you suffered from will haunt you back through forcing you into bankruptcy, leaving the intermediary little to none for collection. With regards to this matter at hand, when you have marine cargo insurance, the risk of unrecovered debts that may result from uninsured cargo loss will be reduced.
Due to the market becoming soft, we suggest that you shop for rates and compare marine insurance providers. Make sure that you do your research first before you choose a marine cargo insurance that you can apply for.
All in all, when getting marine cargo insurance, make sure that it includes all the needs that you have and that it is flexible as well.