When you are selling or buying goods and then shipping them from one place in the world to another you have “cargo risks”. In order for that cargo, and your business, to stay protected you will need insurance that covers damage and losses to all goods, commodities and merchandise even when it is in transit by land, sea and/or air or while it is in storage somewhere across the globe.
It is also important that the insurance you get matches your specific terms of sale, as it is typical for exporters to sell on a Cost Insurance and Freight (CIF) basis or something similar. What this means is that you might be held responsible for arranging cargo insurance.
Alternatively exporters can sell using Ex Works, Free on Board (FOB) or Cost and Freight (CFR) terms, which represent the minimum obligation for the seller, who has merely to make the goods available at his premises for collection by the buyer’s designated carriers.
Whether you are a buyer or seller and whatever your “cargo risks”, the coverage you are arranging is critical. It is important to know about your terms of sale, your obligation to contribute to General Average (one of the oldest principles of cargo, which applies to loss or damage to the vessel or cargo, by way of a sacrifice in order to save or preserve the greater venture) and more.
We have access to the strongest cargo insurers in the business in addition to resources that can help you automate your reporting making the issuance of certificates and monthly declarations much easier.
For more information regarding Cargo insurance and how it applies to you and your business contact us directly today.