During its journey, a shipment passes through different carriers, ports, warehouses and transhipment points. Carriers’ liability is limited by international conventions and transport document terms and often falls short of the true value of the goods. Cargo insurance indemnifies you directly for loss of or damage to your goods, within the policy terms, regardless of carrier fault. This means you need not wait for lengthy proceedings against the carrier.
Cover is usually structured on the basis of the Institute Cargo Clauses (ICC A/B/C). Businesses with regular shipments can opt for an open cover, while single shipments can be insured under a voyage policy. A policy correctly structured around the delivery terms in your sales contracts also works in line with your letter of credit and banking requirements. The points at which cover attaches and terminates are also set by these delivery terms.
Who is it for?
- Manufacturers and trading companies importing and exporting goods
- Businesses with regular domestic distribution and shipments
- Companies shipping project cargo, machinery and equipment
- Sellers and buyers required to insure under a letter of credit or sales contract
Scope of cover
- Institute Cargo Clauses (ICC A/B/C): cover options on an all risks or named perils basis
- Modes of transport: sea, air, road and rail, including combined transport
- Open cover: all shipments during the year insured under a single framework policy
- Voyage policy: tailored cover for single or project-based shipments
- General average and salvage: cargo’s contribution to general average in sea transport
- Transit storage: transhipment and waiting periods forming part of the transit
- War, strikes and temperature control: optional Institute War and Strikes Clauses and cover for refrigerated cargo
Scope of cover, limits and deductibles are determined by the insurer’s general and special conditions; the final scope is set out in the policy.
The Proxima Brokers approach
We analyse your product groups, packing, routes, delivery terms and annual shipment volumes to determine the most suitable structure, whether open cover or voyage policy. We review the policy terms from the choice of clauses to the basis of valuation and place cover in the market. The final scope depends on the policy wording; once a loss is notified we arrange the survey and pursue recovery from the carrier.