Getting your goods from A to B
Marine Cargo Insurance really is quite straight forward in many respects, it covers your products whether leaving your premises to be exported or whether you are bringing them back into the UK as an importer
Your products may not even touch UK soil as you could have arranged them to move from A to B in another country. In simple terms though Marine Cargo Insurance covers goods transported from one destination to another.
Where are the goods covered
Goods are covered by Road, Sea or Air generally from the point of manufacture or distribution points, in the course of their journey to their final agreed destination*.
So how can we better understand this from an import perspective? Having manufactured your product you have an overseas buyer, there are various ways in which cover can be attached with this scenario.
The buyer may decide to collect the goods from your premises, in which case this is then Ex-works, you have no responsibility for the goods once they leave your premises, although you may still need protection for your goods should the buyers insurance fail to respond to the loss.
FOB, this stands for Free on Board. You would need to ensure under these terms that you are covering the goods as well as the purchaser, liability/responsibility for the goods passes from the seller to the buyer once the goods are on the boat.
CIF, this is Cost Insurance & Freight. This is one of the more common terms used in Marine Cargo Insurance. When you sell the goods to your customer you agree to cover the item from it leaving your premises to the point at which it arrives at your customers premises, that journey may be by vehicle, on a boat, in storage on its journey and then by road again to its final destination
What if I am an importer
Generally there is little difference whether the goods are leaving your premises destined for your customer or in reverse where you become the customer
As an importer there can be benefits on stock depending what you are actually doing with the stock.
Under normal circumstances your stock would be covered under the “stock” section of a commercial combined insurance policy, on a Marine Cargo insurance policy, stock cover can be provided under what is know as stock throughput insurance, this type of cover isn’t for every importer but it can be something that should be considered when looking at a complete program of insurance.
*So my goods are covered anywhere throughout the world?
In a word NO, unfortunately countries throughout the World are a bit like a moving target, a country that insurers are happy to cover today, may not be the same tomorrow, sanctions, war zones all play a part in whether the insurer will cover goods to that country.
Depending on the country, insurers may decide that they only wish to cover goods up to the port and no further in the country in which the goods are destined for, others may decide that if the goods are travelling through nearby waters they will not provide cover either.
Don’t just take out Marine insurance because its the cheapest, not all Marine insurance is the same – understand your product, its destination and how its getting there – speak to us.
Call us NOW to discuss your marine insurance requirements on 01623 397300
Alternatively we can call you back, just let us know when and at what time