Reasons to Get Marine Cargo Insurance

marine cargo insurance

With the advancement of technology, our planet has become more modern. It has made the globe a safer and more pleasant place to live. However, some segments of society have yet to benefit from the advancement of technology. One of the sectors that haven’t taken use of technology and are still risky is transportation. Improvements in the transportation industry, on the other hand, have reduced the risk.

A trustworthy logistic service provider, appropriate transport packing, and reliable Marine cargo insurance are three foundations of risk reduction in the shipping sector. During transit, goods are more likely to break. That is why marine cargo insurance is recommended since the coverage offered by this insurance will assist you financially if there’s damage to your items during transportation.

Reasons to Get Marine Cargo Insurance: 

1. Theft Risk:

Cargo theft continues to wreak havoc on global supply systems, costing billions of dollars in direct and indirect losses. Cargo theft is expanding at an alarming rate, particularly through phony pickups and a false identity. What if your cargo is also targeted by crooks? It is preferable to purchase marine cargo insurance now rather than later whenever a loss occurs.

2. Loss of Containers in the Sea:

The expanding tendency of transporting massive stacks of shipping containers has increased, thus increasing cargo containers being thrown overboard. It means that each year, more containers are lost at sea. According to the World Shipping Council’s assessments, roughly 733 containers were lost at sea between 2011 and 2013, more than double the number lost between 2008 and 2010. Given this frightening rise, it is prudent to purchase maritime insurance.

3. Natural Disasters Are Unavoidable:

Storms, shipwrecks, pirate attacks, and other events can occur anywhere and result in multi-billion dollar economic losses. Although this factor is out of human control, preparing for it can significantly improve successful operations.

4. Damage of Cargo:

Damage to cargo is widespread, just like theft. Even when all safety precautions are taken, cargo damage occurs due to poor export packaging, insufficient ventilation, incorrect container selection, bad container condition, overloading, etc. Even though cargo damage can occur for various causes, you will be financially impacted if you do not have marine insurance.

5. Legal Requirements:

The selling contract with the shippers may require you to purchase maritime insurance to protect the rights of the buyers. Failure to purchase marine insurance when a carrier is legally required to do so will expose the shippers to economic loss in the event of a loss or damage to goods. But non-compliance with the contract’s terms and conditions will also result in the loss of your customers’ faith.

6. The Cargo Carriers Aren’t Responsible:

Carriers are not legally liable for various typical causes of damage, such as natural disasters, poor average, and so on. Liability will be limited even in cases where carriers are accountable. As a result, shippers should never rely on the carrier carrying their goods or services in the event of loss or damage during any transit and instead purchase marine cargo insurance coverage.

These are the reasons to buy proper marine insurance to protect your precious cargo on board.

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