December 1, 2022

Compass Classicyachts

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Marine Insurance Coverage and Choosing the Right Protection

It is a little late to start studying your marine insurance coverage policy if a situation arises where you have to make use of it. You should feel confident right from the time you choose your marine protection package that you have all the necessary areas covered.

You first need to determine what your coverage needs are so you have a good idea of what to look for in your policy. If you are inexperienced in this area then it’s imperative that you deal with a Marine Insurance Company that is willing to take the time to look at what your specific requirements are going to be. Your needs as a charter vessel operator is going to be different from those in the business of moving cargo. Your insurance representative should be able to make the right suggestions for you to consider.

Nothing is more distressing than to have a financially profitable on the water business only to have it ruined by some mishap that you were not fully covered for.

One of the common misconceptions when it comes to any type of insurance is that policyholders believe that all insurance coverage is basically the same. They tend to focus on the cost of the Insurance or how high the premiums are. When it comes to cutting costs this is one area of business that you don’t want to attempt this with.

For those that are in the cargo moving business, it has its own share of risks. There is always the possibility that the cargo could sustain damage or even be lost in transportation. Having the right insurance coverage in place can make a major financial difference in this case. One may try to predict any potential hazards but there can always be something unforeseen that arises, that creates a peril. Just the weather in itself can pose a big risk in this particular industry and it doesn’t just pertain to vessels while they are on the water. Cargo can easily get damaged on land or refrigeration loss could create devastation that without proper insurance coverage could have a heavy financial impact on a business.

By feeling confident in your marine insurance coverage it allows you the peace of mind to concentrate on the other pressing issues of your vessel-related business. Not only having good Insurance in place is important but fully understanding what you are covered for is just as important.

How Much Do You Have To Pay For Goods In Transit Insurance?

The amount that you would have to pay depends on a number of factors, which include:

  • Types of goods being insured
  • The trip
  • How the goods are packed
  • Types of covers (the better the coverage, the higher the premium will be)
  • Benefits required (the better benefits, the higher the premium will be)
  • The maximum limit per conveyance
  • The estimated annual turnover

Please note that the premium also depends on which country you are in and where the package is heading to.

What Is Not Covered Under Goods In Transit Insurance?

Most insurance companies do not cover damages that are caused by strikes, riots, and civil commotion.

Here is some major exclusion under the goods in transit insurance:

  • No coverage if there is willful misconduct of the assured
  • Loss of or damage such as wear and tear, loss in weight or volume
  • Dishonesty of any employee or servant of the assured

Note: This is not a full list of major exclusions under the goods in transit insurance. Also, the exclusions depend on the company that you are going with.