Ocean Cargo Insurance

Subscribing an insurance policy on cargo is essential for international ocean transport. It helps you recover the investment in case of damages or losses.

Obtaining compensation for damaged or lost cargo during ocean freight is complicated. In the absence of insurance, it is necessary to prove the carrier's responsibility to receive a reimbursement.

This is a critical factor for companies dealing with high-value goods.

 

In this article you'll learn:

• 3 Reasons to insure your ocean shipment cargo

• How to choose maritime transport insurance?

• Simplify the insurance claim process

 

 

3 Reasons to Insure Your Ocean Shipments
 

1. Protect Your Cargo from Incidents

International freight shipping can always be affected by accidents and delays. Common risks include:

• Theft: ocean shipments are exposed to theft, especially during transits at terminals and land connections. Product theft is a significant unexpected cost for your business without transportation insurance.
• Water Damage: Worn-out equipment (containers) may lead to moisture and wetness affecting the content, causing damage.
• Loss: Large cargo ships carrying thousands of containers have a high risk of losing them at sea. Over the past 15 years (2008-2022), estimates show an average of 1,566 containers lost annually, as reported by the World Shipping Council (https://www.worldshipping.org/news/world-shipping-council-releases-containers-lost-at-sea-report-2023-update).
• Unforeseen Events: Extreme weather conditions, geopolitical tensions, piracy, and accidents often result in container loss and damages.

 

2. International Laws Protect Carriers

International laws limit carriers’ liability to facilitate international trade. Without insurance, responsibility for maritime cargo loss or damage falls on the shipper and consignee. In extreme cases, such as the general average, the cargo owner may be involved in salvage expenses, especially if their goods are undamaged. If your goods are not protected by insurance coverage, this may lead to significant, unexpected costs.

3. Security of Compensation

Insuring your cargo provides certainty of compensation in case of incidents. By purchasing an insurance policy, the shipper pays a premium to the insurance company, which, in turn, guarantees coverage during transport. If goods are damaged or lost during transportation, the shipper can file a compensation claim to cover expenses and resulting damages.

 

 

 

Marine Cargo Insurance: How to Choose It?

Cargo owners should arrange ocean shipping insurance based on their specific needs.

The level of insurance premium depends on various factors, including:

• The value and nature of the goods
• The destination
• The selected mode of transportation
   

At D.B. Group we are always available to assist clients in evaluating the best insurance option based on individual requirements. We provide support in managing insurance procedures, ensuring that each option is tailored to specific needs.

 

pexels-matthis-volquardsen-2326876.jpg

 

Filing a Claim and Simplifying the Compensation Request Process

If the shipment is insured, the compensation request for theft, damage, or loss of ocean cargo must follow a specific process.

• The shipper holds the carrier responsible.
• The insured party contacts the insurance company to file a claim within the timeframe specified by the insurance policy.
• If the claim is approved, the insurance company will reimburse based on the commercial invoice value.

 

At D.B. Group, we assist you in streamlining this process. In case of need, our teams will handle the refund request on behalf of clients, take care of document completion, communicate with the insurance company, organize and coordinate inspections, and any other steps necessary for the efficient management of insurance procedures.

For more information, feel free to request our support.