Ocean Marine Insurance For Sea Freight Forwarding

By Author: Belinda Darling
Total Articles: 152
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As required, ocean marine insurance covers ocean freight and protects the cargo vessel as well. Such an insurance policy also provides coverage for the owner of the cargo and the cargo ship as well. Still, even air and land freight may be covered by this. Movement across international territories means this is not regulated by any specific country.

Dangers of freight forwarding through the sea are plenty. The most common one is goods being damaged due to improper handling and unforeseen circumstances. Goods may be broken en-route to the destination as well. In addition, rough seas may injure crewmembers as well as damage the ship itself. Protections against such instances are possible through different types of marine insurance.

There are several types of ocean marine insurance that freight shipping companies can get. Hull insurance, for instance, covers the integrity of the machineries inside and the vessel itself from damages. This includes damage from sinking, fire, collision and stranding. Validity last from just one voyage or over a set period of time.

To protect the actual cargo being shipped by freight ...
... forwarding companies, cargo insurance is taken. Coverage can be for just one specific cause of damage or a wide range of incidents. It may also be special or open-ended with the former being bought on a contract to contract basis. Open-ended on the other hand means cargo is picked up where it is headed.

P&I insurance are designed to protect the vessel’s owners from liability. More specifically, this type of ocean marine insurance covers liability caused by damage to cargo, injuries and deaths as well as damage to underwater cables, piers and other similar items.

On a somewhat related note, ocean marine insurance is not limited to cargo vessels. As the name implies, yacht insurance provide coverage for sea-borne pleasure crafts. Larger vessels are covered by such a type of insurance while smaller ones fall under a different coverage provider altogether.

Insurance is very important if you are engaged in the business of freight shipping. Protection against unforeseen circumstances can prove invaluable in case of emergencies. Additional fees may be required but it is literally a small price to pay to mitigate losses.

The good news is that there are plenty of policies available for ocean freight and the vessels that transport them. Insurance policies may also cover miscellaneous items including piers, marinas, docks, repair facilities and shipyards. Still, a few incidences are excluded from coverage such as acts of war, riots, strikes and confiscation. Endorsements should take care of these things though.

Companies who have freight forwarders handling their supply chain management should ask if their shipments are covered by insurance. Government regulations may require this though. Still, it is important to know what kind of policy the goods have and what they cover against.

Ocean marine insurance should not just be for priority and precious shipments. It is best that all your goods are insured as a safeguard against losses. Know as much as you can about how your ocean freight forwarders are handling your shipments.

Allworld Logistics is the premiere provider of freight shipping services, offering quality services. Count on us for all your freight forwarding and worldwide shipping needs.