April 21, 2024

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Discover The Difference

Why Transit and Marine Insurance Matters

Marine insurance is insurance designed to insure shipments from the manufacturer/agent to their destination, including storage during the voyage/transport and then land transportation to the importer’s destination.

This policy is issued under a letter of credit issued by an importing bank, subject to insurance requirements.

Insurance offered against:

  • Contingent Risk (referred to as ICC-C)
  • Accident risk and damage to goods (ICC B)
  • All risk (for all physical loss or damage to goods during transit from point of origin to importer’s destination) – referred to as all risk.
  • In addition to the above risks, war risks and strike risks are covered separately.

Marine insurance covers any kind of damage/loss to the cargo during transit between origin and destination. Goods can be transported by sea, air or land according to the needs and wishes of the customer. Cargo insurance is a sub-branch of marine insurance, but marine insurance also covers onshore and offshore exposed assets when goods are transported by post or courier, but shipping insurance is used instead.

Marine insurance, like many other types of insurance, not only helps in protecting the ship but also protects the cargo contained and transported on the ship. There are three types of marine insurance: cargo insurance, cargo insurance and hull insurance, designed for ships, boats and cargo being transported by either of these two carriers.

Secure Now is a provider of international logistics and freight forwarding services and also offers freight insurance. It minimizes the risk of financial loss. We guarantee to make this process the safest and most economical for all our customers.

Marine insurance is useful for a number of reasons.

  • All-round coverage for various perils faced at sea.
  • Most marine insurers provide claim investigation assistance and claim settlement assistance worldwide.
  • Different marine insurance companies offer different options and plans under marine insurance policies to suit different budgets and needs.
  • Marine insurance coverage can often be customized and tailored to a customer’s specific needs and budget.
  • In many cases, marine insurance policies provide extensions that cover damage caused by riots, strikes, and other perils.

Overview of Transit Insurance

Shipping insurance is necessary so that the goods are kept safe while being transported from one place to another. It provides compensation for damage or loss of goods in transit from one place to another. This is the most useful plan for your business so as not to face huge losses.

The cost of insurance premium is determined on the basis of insurance of goods in transit and the risk borne by the customer (policyholder) during the period of insurance.

What is covered by transit insurance?

Transit insurance is a policy that includes coverage for unavoidable perils that may damage goods during transit. These are dangerous and shipping insurance protects your goods by:

1. Explosion

2. Electricity

3. fire

4. Earthquake

5. Man-made or Natural Disasters

6. Capsize of the transport ship

7. Shipwreck

8. Ship Sinking

9. Malicious Damage

10. Stolen

11. Incidental Damage

12. Risk while loading and unloading goods.  

Transit insurance protects you against losses caused by damaged or lost shipments. In the event of a freight-backed event, the sum insured will be paid. And these chains of events correspond to natural disasters, vehicle accidents, abandoned cargo, refusal of customs clearance, acts of war, and acts of piracy.

This is completely separate from the carrier’s liability and insurance policies.