MARINE CARGO

Cargo insurance covers physical damage to, or loss of, goods whilst in transit by land, sea and air.
All too often UK traders see it as an unnecessary expense, and instead allow suppliers or customers to control this vital area of business. This not only increases the difficulties of implementing an effective trade risk management strategy, but can also have an effect on profitability.

There are three Institute Cargo Clauses (levels of cover) A, B or C, plus war clauses and strikes clauses. It's somewhat similar to car insurance cover with comprehensive, third party, fire and theft, and third party policies, with A being the equivalent of fully comprehensive.

Open Cover is the most usual type of cargo insurance, where a policy is drawn up to cover a number of consignments. The policy can be either for a specific value that requires renewal once the insured amount is exhausted or an permanently open policy that will be drawn up for an agreed period, allowing any number of shipments during this time. A specific or 'voyage' policy is one set up solely for a particular consignment.