what is marine cargo insurance

What is marine cargo insurance?

Marine insurance is designed to cover the loss or damage of terminals, ships, cargoor cargo held between the point of origin and final destination. Shipping insurance is used when goods are transported by mail or courier.

Why do I need marine cargo insurance?

With unsettled political climates and a rise in piracy across the globe, marine cargo insurance is a must under some contractual agreements. Your sales contract may obligate you to provide ocean cargo insurance to protect the buyer’s interest or their bank’s interest.

This is especially true when selling goods Failure to do so cannot only subject you to financial loss if there is loss or damage to the goods, but non-compliance with the terms of your contract with the buyer can lead to loss of sales and legal problems. The carriers, by law, are not responsible for many common causes of loss that occur in transit (for example, acts of God, general average, etc.). And, even if they are liable, carriers’ liability in the event of a loss is limited – either by contract in the bill of lading or by law.