For those looking to transport property across the sea, there’s a good chance you might have already looked into marine cargo insurance. It can be a bit of a confusing subject, though, so what’s it all about? In essence, marine cargo insurance is an insurance that covers goods as they are transported from one location to another location, regardless of the distance that the travel involves. The thing that surprises people unfamiliar with marine cargo insurance is that it actually also encompasses any goods that are transported by aircraft, road and rail vehicles. There’s a lot more to it, though – in this blog, we take a closer look at marine cargo insurance to give you a better idea of what it’s all about.
Understanding the marine cargo insurance basics
If you’re in the process of looking for marine insurance, marine cargo insurance quote and are quickly feeling like you’re being overwhelmed, you’re definitely not the only one. As we mentioned previously, marine cargo insurance is a type of property insurance designed to insure property as it crosses the sea, air and even inland waterways. The insurance intends to protect against any loss or damage that occurs as a result of any issues that are related to transportation, whether it be due to weather, loss, or accidental damage. Damage that occurs during transportation generally falls under the banner of ‘maritime perils,’ which translates to perils consequent on or incidental to the carriage of property by sea. Perils of the sea, as you might imagine, can involve quite a huge variety of things. Whether it be the ship sinking, being stranded , colliding with another ship or object, or even more extreme scenarios such as fire, war perils, pirates, thieves, capture, and goods being washed overboard, marine cargo insurance is designed to keep you covered.
What marine insurance covers and who is eligible to purchase it
There are no specific things that marine insurance covers, as it more or less depends on what is being transported. Whether you’re wanting to transport raw materials or goods and merchandise, you’ll be able to invest in marine insurance to guarantee the safety of your goods (financially, at least). So, who is responsible for insuring this cargo exactly? Anyone who has any financial interest in any goods being transported can purchase marine insurance for it. Interestingly, that means that either a buyer or seller of the same good can provide the relevant insurance for it to make sure that it gets to its destination alright. To assign this situation in more legally-oriented terms, the Maritime Act determines that anyone who stands in any legal or equitable relation to the adventure in consequence of which he may benefit by the safe arrival of the property or be prejudiced by its loss is able to get insured for their cargo.
Is marine cargo insurance right for you?
It should be clear that marine cargo can be a hugely beneficial move for anyone looking to send or receive cargo over unpredictable waters. Whether you’re the buyer or seller, if there isn’t marine insurance assigned to your cargo, it may very well be considering once more if you should safeguard your investment – no matter the distance, the seas can be highly unpredictable, after all.