Marine Cargo Insurance: It’s as easy as A,B,Sea
UK businesses sold over £150bn goods to countries outside the EU last year and over £130bn to the EU member states; and ninety-five per cent of British goods imported or exported come in and out of our ports. These impressive figures not only show the importance of the UK as a global trading nation but also the role our ports play in boosting our economy. It also highlights the importance that business supply chains should have the correct marine cargo insurance to protect these valuable goods.
Whether you’re a start-up, an SME or a global business involved in the distribution of goods across the sea, then specialist insurance cover is a must. Ensuring goods are protected in transit, and that they arrive in perfect condition at their destination makes commercial sense especially as most claims are against the poor packaging or handling of goods in transit.
Although an extreme case to reference, the Tianjin port explosion in 2015 highlights the value of specialist insurance, even for situations which may not seem that common. Global car manufacturer Jaguar Land Rover alone lost thousands of vehicles in this explosion which has been cited as the third most expensive supply chain disruption, estimated at a cost of $9bn, last year.
UK businesses which import and export goods are frequently quoted a ‘CIF’ price (Cost, Insurance and Freight) from the shipment carrier seemingly making the shipment processes simple and cost effective with the added bonus of not having to deal with insurance themselves.
However, not is all as it seems with these ‘package deals’ and without specialist knowledge, businesses can end up paying out tens of thousands of pounds for inadequate and insecure cargo cover due to flaws in contractual relationships and responsibilities; also cover arranged by freight forwarding suppliers may not be backed by an A-rated security, leaving shipments vulnerable to uncooperative insurers in the case of loss or damage.
Added to this, the insurance arranged by the shipper may end as soon as the shipment arrives in the UK, leaving it uninsured on its way to its final destination.
It might not even be on a business’s radar but having the correct and most cost effective marine cargo insurance policy to protect against loss or damage of valuable goods makes commercial sense. For so many businesses it can be a minefield. That’s why going to an expert broker, who can act on a business’s behalf and get the best price with the best cover for their needs, can take the headache out of insuring goods going via the sea, and save money.
Russell Scanlan’s Managing Director, Bryan Banbury, said: “The UK’s economic success is hugely dependent on its ability to import and export. Despite the current economic uncertainty around leaving the EU, demand for seaborne trade looks set to continue so it’s important to protect the value of these goods. However, businesses do need to be aware how much they could save by going via an expert broker rather than dealing direct with the shipper. Many of our clients have seen the benefits from taking control and coming to us to arrange safe, cost-effective insurance that fully covers their cargo in transit.”
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