Marine cargo insurance provides protection against the loss or damage of your freight/cargo while being exported, imported, or transported within a country by sea, air, road, and/or rail.
When goods are lost or damaged in transit, you may suffer a significant financial loss if your business involves transport by land, rail, air, or sea. Consider an Annual Marine Cargo Insurance policy if you receive or send goods frequently.
There are also specialised types of transit insurance available for the transport of refrigerated goods, livestock/animals, and dangerous goods. Depending on the type of transit insurance, you will determine the costs, and we cover each category here to give you an idea of what to expect.
Marine Cargo Insurance Cost
Prices start as low as 0.5% total of a single transit policy within Australia. If you’re importing or exporting, you may receive a one-off cover for as little as AUD 300. Accurately calculating costs to determine your company’s freight insurance depending on:
The classification of freight
Cargo contents
Shipping route
History of loss.
Opting for an annual policy tailored to the number of transits you need will typically save you 25-40% off compared to a single-transit insurance policy.
Generally, non-dangerous cargos and home/personal goods are the cheapest to insure during transit. Insuring your refrigerated goods, animals, and livestock typically costs more.
What it covers?
A reliable marine cargo insurance policy covers the cost of any damage done to your freight, minus the deductible. Typical causes and damages need to be covered by your insurance premium:
Theft or piracy
Accidental damage
Collision
Dropping during loading and unloading
Natural disasters (fire, explosion, lightning)
Insured events
Impact of goods with external objects other than the conveying vehicle or road
Malicious damage
What Is Excluded From My Marine Cargo Insurance Policy?
Management Liability insurance is designed to provide protection to both the business and its directors or officers for claims of wrongful acts in the management of the business.
A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.
Negligence – errors, misconduct, or omissions by carriers or ship personnel
Insolvency – of carrier or shipping company
Failure to pay – failing to ship goods to a purchaser
Wear and tear – ordinary wear, tear, and breakage
Misconduct – wilful misconduct of the policyholder/insured
Inherent vice – the damage or deterioration of goods due to the natural state of a product or defective characteristic
There are many types of marine cargo insurance – each with its own set of inclusions and exclusions – thus making it a challenging field to navigate successfully. You are better off working with professionals who specialize in logistics insurance to ensure complete coverage, and to ensure a secure safety net in case of an unfortunate incident.
Let Truck Insurance HQ help you get the best marine cargo insurance
If you want to see how much you can save on your marine cargo insurance policy, get in touch with the team at Truck Insurance HQ. We’ll compare quotes for you free of charge and deliver you the best insurance policy for your needs.
We have access to over 170 local and international insurers and have spent many years negotiating fantastic premiums for our clients. We have a multi-award-winning brokerage team, an easy claims process, and insurance cover to suit your needs. You will have peace of mind when you insure your marine cargo with Truck Insurance HQ.
Give us a call today at 1300 815 344 or get a FREE online quote by contact Adam Pile.
General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.
All information above has been provided by the author.
Adam Pile, Insurance HQ Pty Ltd, ABN 33606759228, AFSL 363610
This article originally appeared on
Truck Insurance HQ
and has been published here with permission.
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