Marine Cargo Insurance – Goods in Transit

Why purchase marine cargo insurance?

Goods being transported anywhere in the world are exposed to a wide range of risks some of which include loss or damage due to:

• theft, pilferage or hijack;
• mistakes in transportation such as dropping, rough or inappropriate handling;
• accident to the carrying conveyance such as a vessel sinking, aircraft crashing or vehicle fire, road traffic accident or overturning;
• exposure to rain or salt water;
• variations in temperature.

Most of these risks are difficult for the owner of the goods to manage directly. This is because the shipment will be given into the care, custody and control of third parties who will limit their liability for loss or damage to those goods.

Who should purchase marine cargo insurance?

Any company that has responsibility for goods whilst in transit anywhere in the world should buy marine cargo insurance. Companies ought to consider the impact that loss or damage to goods could have, not only on their own organisations, but also on their customers. By purchasing marine cargo insurance the damaging consequences of any loss can be greatly mitigated by a claim on the policy.
Companies that do not currently bear responsibility for loss or damage to goods in transit should consider the benefits of taking on this responsibility, thereby having greater control over the movement of goods and the benefits that are available in more actively managing their logistics. With proper management of the risks and the purchase of a marine cargo insurance policy companies can exercise greater control over negotiating contracts with suppliers and customers.

What cover can Artac offer?

The Artac marine cargo policy provides cover for the risks of loss or damage to goods whilst in transit including extensions in cover for:

• loss or damage whilst loading onto and unloading from the carrying conveyance;
• insured's control of the salvage or disposal of their own branded goods;
• buyers and/or sellers contingent interest;
• delayed discovery of concealed damage;
• increase in the value of goods due to the imposition of duty;
• full payment of general average or salvage charges;
• costs for the removal of debris;
• loss or damage to goods whilst in transit to/from and whilst at exhibitions, trade fairs or shows.

Upon application to underwriters cover may be provided for further additional perils such as:

• loss or damage to goods whilst in store outside the ordinary course of transit
• financial loss consequent upon physical loss or damage to goods whilst in transit
• loss or damage to engineers' and/or sales representatives' tools, samples or equipment.