An insurance policy serves the purpose of protecting you from financial loss. It provides support and assurance in case of unexpected or unprecedented circumstances. Like any other insurance, marine insurance policies provide support to cover the risks associated with maritime activities.
Any business that involves taking the sea route to carry out their operations must be familiar with marine cargo insurance. This is relevant to anyone involved in the movement of goods such as buyers, sellers or manufacturers. While in transit, your cargo is exposed to a variety of threats. Marine cargo insurance aims at managing such risks in the event of unfortunate incidents like loss or damage to property due to accidents.
In FY 2019, cargo traffic at major ports in India reached 699.05 million tonnes (MT). The use of sea routes is only going to grow and develop in the future. These numbers indicate that marine cargo insurance is becoming an essential purchase, whether your business is local or international. While technology is continually evolving, maritime transport still involves a variety of risks.
Let’s look at some ways marine cargo insurance can help safeguard goods in transit:
1. Loss Due to Disaster
Despite abiding by the rules and regulations, certain situations are out of anyone’s control. Natural calamities such as storms, cyclones and floods can make any cargo vulnerable to damage or loss. This can cause substantial financial loss for parties involved in the business. Marine cargo insurance covers any damage to the goods through such external means. Depending on the terms of your chosen policy, you can claim coverage for partial or total loss of goods in transit.
2. Cargo Damage
Marine cargo insurance covers a wide array of situations that can harm goods. Damages due to improper packaging, invasion, fire, riots are some circumstances that are covered under this policy. As a business owner, you must understand that despite investing a substantial amount of money to ensure the smooth transit of the goods, the importance of marine cargo insurance remains undiminished. In times of crisis, this is the financial support that you need to help your business.
3. Cargo Theft
For someone not familiar with trade through the sea route, piracy might sound like a thing of the past. However, piracy affects marine business today as well. With the development of technology, the ways of stealing cargo are also changing. Specific cyber-attacks are implemented to aid cargo theft by giving miscreants access to sensitive data.
While it is crucial to install robust security procedures to avoid this, marine cargo insurance is of equal importance. Along with appropriate reinforcement of technology, a marine cargo insurance policy strengthens your protection against any such unfortunate incident.
4. Contractual Requirement
The business of moving goods through sea is complex. This is why most buyers and sellers around the world consider marine cargo insurance a necessity. Some ports do not accept a shipment if it is uninsured. It is essential to invest in a marine cargo insurance policy to avoid any such inconvenience to your business. This not only affects you financially but also has legal consequences.
There are different types of marine cargo insurance policies available. It is up to you to select a plan that suits your requirements in the best way possible.
Since this is a significant financial decision, you can take the help of trusted insurance brokers such as SecureNow to make a sound decision. They work with leading insurance firms to provide comprehensive protection at the best rates. Their professional advice will help you get the best benefits from your marine cargo insurance policy.