If your business imports, exports or transports goods, there’s a risk of loss or damage while those goods are moving between locations.
Marine Cargo insurance is designed to help protect goods during transit, whether they’re moving by sea, air, road or a combination of transport methods.
Despite the name, it isn’t limited to ocean freight.
What can Marine Cargo insurance cover?
Depending on the policy, cover can apply to goods while they are:
- being transported within Australia
- imported into Australia
- exported overseas
- temporarily stored as part of the ordinary course of transit
- being loaded or unloaded.
Current Australian marine cargo policies can be arranged for a single shipment or on an annual basis for businesses that move goods regularly.
The insured events, geographic limits and conditions vary, so it’s important to check how the policy defines when transit starts and ends.
Who might need it?
Marine Cargo insurance can be relevant to:
- importers and exporters
- manufacturers and wholesalers
- retailers moving stock
- businesses transporting valuable equipment
- freight forwarders and logistics operators.
A common mistake is assuming the freight company will automatically reimburse the full value of damaged goods. The carrier’s legal liability can be limited by contract or trading conditions, and that liability is different from insurance covering the goods themselves.
What about other marine insurance?
Marine insurance is a broad category.
Hull insurance is designed for physical loss or damage to vessels.
Freight or Carriers Liability insurance can cover a transport operator’s legal liability for customers’ goods.
Marine Liability insurance can address certain legal liabilities arising from maritime or logistics activities.
Specialist Professional Indemnity or Errors and Omissions cover may also be relevant for freight forwarders or logistics businesses providing professional services.
These covers are separate from Marine Cargo insurance and shouldn’t be assumed to be included automatically.
Check the terms of sale and transport
Who is responsible for insuring goods can depend on your purchase contract, sales terms and transport arrangements.
Before goods are shipped, check when the risk transfers between buyer and seller and who is responsible for arranging insurance.
If your business imports, exports or regularly moves goods, speak with your Insurance Advisernet adviser about where the goods travel, their value, who is responsible for them in transit and whether annual or shipment-specific Marine Cargo cover may be appropriate.
Contact Lewis Insurance Services on 07 3217 9015 or send us an email by clicking here.
General advice warning: The information provided is general advice only. You should consider whether it is appropriate for your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase a financial product.
This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L, www.insuranceadviser.net