Episode one: Marine Cargo Insurance applies to more than just ships  

Marine Cargo Insurance covers goods that travel by sea, road, rail or air, and for both inter-country transit, as well as for imported and exported goods.  

Policy wordings are typically based on a global standard and can be issued on an ‘All Risks’ or ‘Named perils’ basis. ‘Named perils’ is where specific risks are written into the policy such as fire, collision or sinking when transporting cargo from one place to another (known as conveyance). The (London) Institute Cargo Clauses are the most used policy form in the insurance market . 

Marine cargo insurance can cover loss or damage to cargo in transit and storage during ordinary course of transit, including for a range of goods, such as dry goods (e.g. cotton and coffee), perishable foods (e.g. fruit and vegetables), or other items such as vaccines, crude oil and chemicals. 

There are a multitude of risks for something to happen to cargo. For example, cargo damage due to the temperature variance of refrigerated containers, accidents at ports when loading cargo by cranes, or fires at warehouses. Natural disasters such as typhoons (also known as cyclones and hurricanes) are also a constant threat.  

In the event of an incident, claims are made to the insurer as soon as possible with documentation, with surveyors appointed to investigate where necessary.

 

Did you know?   
Marine insurance originates from the 1680’s when a London coffee shop run by Edward Lloyd became a specialist place for information on the global shipping trade. The shop evolved into a place where business people started selling insurance to ship owners whose ships were going on long trips to destinations around the world or to parties in the shipping industry wishing to insure cargoes.

Lloyd’s of London is now the largest specialist (re)insurance market in the world.

This article is sponsored by QBE Hong Kong. If you have any inquiries about our risk management and insurance solutions, please contact us at expert@qbe.com.

 

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