Marine insurance ensures goods are covered from port to destination

Shipping goods over long distances comes with various risks, including damage, theft and loss. To avoid these issues and the associated financial strain, it is wise to invest in a reliable marine insurance policy. A comprehensive policy will protect your goods throughout the journey, i.e., from the moment they leave the port to when they arrive at their final destination.

This provides both peace of mind and financial security during unexpected events. That’s not all. Read on to discover how marine insurance protects your goods during transit.

What is marine insurance?

Marine insurance is a type of coverage designed to protect ships, cargo and other vessels from losses that can occur during transit over water, as well as through other means of transport such as land and air. The policy covers goods against damages caused by a wide range of perils, including natural disasters and manmade events, easing stress and financial setbacks. A marine insurance policy typically covers theft, accidental fires, piracy, collision with other vehicles, storms and hurricanes.

How marine insurance ensures goods are covered from port to destination

Marine insurance plays a vital role in ensuring that goods are protected from various risks during their journey from the point of origin to their final destination. Here’s how:

• Comprehensive coverage: Marine insurance safeguards goods throughout their journey, covering a range of risks, such as:
  • Transportation risks: Collision with other vehicles or stationary objects
  • Weather-related risks: Storms, hurricanes, cyclones, floods and lightning strikes
  • Other risks: Fire, explosion, theft, piracy, cargo damage during loading/unloading, earthquake

The policy ensures that goods are shielded from both expected and unforeseen hazards.

• Coverage across multiple modes of transport: Marine insurance provides coverage across various modes of transportation, including sea, air, rail and road. It also covers combined transport methods, offering better flexibility to businesses.
• Continuous coverage: Continuous coverage ensures your goods are covered for the entire transit period, eliminating gaps in coverage and providing peace of mind from origin to destination, regardless of the mode of transport.
• Tailored policies: Businesses can customise their policies to match specific requirements, such as cargo type, transport route and duration, ensuring that the policy meets their unique shipping needs.
• Global protection: Marine insurance offers worldwide coverage, ensuring that goods are protected, whether shipped within the country or to foreign markets.
• Financial protection and business stability: The policy ensures that businesses are financially compensated for losses incurred during transit. This compensation received can help them recover quickly in case of unforeseen challenges, such as damaged or lost cargo.

Importance of Marine Insurance

1. Business stability: One of the most important reasons to invest in marine insurance is the financial security it provides. The policy covers potential losses your shipment may face during transit. It helps you recover the value of goods, cargo, or vessels, minimising the economic impact and ensuring the continuity of your business operations.
2. Legal compliance: In many cases, marine insurance is a legal requirement, especially for international shipments. Therefore, it is essential to secure this insurance to ensure adherence to both local and international regulations and avoid potential legal issues.
3. Assists in risk management: Transporting cargo involves numerous potential risks, both environmental and accidental. With marine insurance, you can mitigate these risks during transit, allowing for smoother business operations and reducing the likelihood of costly disruptions.
4. Peace of mind: Marine insurance provides peace of mind, knowing that your shipments are covered during transit across different transportation modes.

Conclusion

Marine insurance provides comprehensive protection against a wide range of risks, such as theft, accident, weather-related risks and piracy. Therefore, having this insurance in place helps you ship your goods with peace of mind and confidence, knowing you are financially protected. With the right coverage, your business can ensure smooth delivery of goods and avoid losses.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.