If your business conducts business with ocean freight, purchasing insurance could be a valuable asset to stabilizing your bottom line. Maritime law dictates that if a cargo ship need to jettison any cargo to preserve the lives aboard and the ship itself, all owners of cargo share the cost of the lost goods. You could still receive your products but also still receive a bill to pay for the lost goods of another patron.
Cargo Ships Sink and are Attacked on a Frequent Basis:
- 1 Dies and 14 Missing After Ship Sinks in Philippines
- Pirates Attack British Cargo Ship in Gulf of Guinea
- Battling Somali Pirates in the Seychelles
These kinds of events should be expected. This is why having ocean freight insurance can help save you money. It not only allocates funds for lost cargo, but it also relinquishes your financial liability to recuperate the losses of the other cargo owners.
It is important to know who needs to provide the insurance. Sometimes the shipper exporting the goods will insure them until they reach the buyer. Insuring through a company in the United States can provide you some added advantage if you need to file a claim.
As always, document carefully the value of each item. This gives you standing in which to enforce your claim.
Be sure to take care in reading what type of coverage you are receiving. Some insurers will offer an “all-risk” type of insurance so that any event will be covered for you & others offer specified perils only.
When needing goods shipped over seas, it is important to consider insurance for your shipment. If you don’t, you could be financially responsible for the other customers’ cargo too.