Failure to cover goods in transit can prove costly to businesses. Cover can be arranged for goods whilst on the road within the UK or outside the UK on a Marine policy. It is possible to recover costs against the carrier, however, many companies prefer the certainty of arranging their own cover (leaving insurers to recover their costs against the carrier).
What is covered? Loss of, or damage to, property in transit, based on standard to bespoke conditions of carriage.
When arranging cover for our clients, due consideration is given to:
- Any one consignment limits start at £50,000, but need to cater for the possibility of numerous containers being transported on the same vessel
- Territorial limits
- Wordings will normally specify the territories within which cover is in force. Premiums are charged based on the value of the goods being sent to each of the destinations specified
- Institute cargo clauses
- Define the cover provided. Clauses A provides the widest basis of cover with clauses C offering restricted contingencies (loss/damage caused by: fire, explosion, vessel or craft being stranded, ground sunk or capsized, overturning or derailment of land conveyance, collision, discharge of cargo at port of distress and general average sacrifice)
- Definition of goods
- Care must be taken to ensure the description of goods is wide enough and clauses can apply restricting cover for second hand goods
- Goods in storage
- Inner limits can restrict cover for goods in storage in excess of 60 days. Wordings need to be carefully drafted to ensure cover is not prejudiced
- Theft attractive goods
- Security conditions can apply and cover excluded whilst specific high risk goods are transported through high risk countries
- Electrical and mechanical derangement
- Needs to be specifically included if required
- Period of responsibility for goods/carriage contracts
- If for example the goods are purchased on a CIF basis (cost, insurance & freight), the seller should insure the goods until the goods are on board the ship at the port of shipment, thereafter the buyer is responsible until arrival at the port of destination
Castlemead Insurance Brokers have the knowledge, experience and market connections required to competitively place the required cover for your business.