Which insurance policy should you take out?

Marine insurance gives you peace of mind. It means being covered against costly risks, such as loss of life, damage to cargo, oil spills, and the like. Now, which insurance policy should you take out? 🤔 Here are 𝟵 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗽𝗼𝗹𝗶𝗰𝗶𝗲𝘀 you may come across when you’re in the process of getting your ship and cargo covered. 1️⃣ 𝗩𝗼𝘆𝗮𝗴𝗲 𝗣𝗼𝗹𝗶𝗰𝘆 It’s valid for a specific journey, from the port of departure up to the port of destination. This type of policy tends to be purchased for cargo. 2️⃣ 𝗧𝗶𝗺𝗲 𝗣𝗼𝗹𝗶𝗰𝘆 It’s issued for a particular period – often for a year – regardless of the number of voyages. It’s generally used for hull insurance. 3️⃣ 𝗠𝗶𝘅𝗲𝗱 𝗣𝗼𝗹𝗶𝗰𝘆 Your insurance will cover a particular voyage for a specific period (e.g., from Lisbon to Luanda, and then for 24 hours after arrival). It may be beneficial to both hull and cargo insurance. 4️⃣ 𝗩𝗮𝗹𝘂𝗲𝗱 𝗣𝗼𝗹𝗶𝗰𝘆 The value to be indemnified is decided at the time that you sign the contract, so there won’t be any disputes in case of loss. The insured value doesn’t necessarily match the actual value. Its calculation includes: · Cost of goods · Freight · Shipping charges · Insurance · Some margin of profit (generally 10%) 5️⃣ 𝗨𝗻𝘃𝗮𝗹𝘂𝗲𝗱 𝗣𝗼𝗹𝗶𝗰𝘆 The amount of loss is determined once it occurs. Needless to say, evaluation at the time of damage may be challenging, so this isn’t a common policy in marine insurance. Besides, if you’re in international trade, you should take into account that unvalued policies don’t contemplate your profit margin. 6️⃣ 𝗙𝗹𝗼𝗮𝘁𝗶𝗻𝗴 𝗣𝗼𝗹𝗶𝗰𝘆 Instead of purchasing a marine policy for each shipment, you may take out a policy for a lump sum that will provide cover against all shipments made during a certain period of time. When the cargo is dispatched, you must make a declaration stating its details, and the amount of your policy will be reduced to that extent. 7️⃣ 𝗕𝗹𝗼𝗰𝗸 𝗣𝗼𝗹𝗶𝗰𝘆 Sending goods by rail or truck to the port of departure? Go for a block policy, which will cover both land and sea risks. 8️⃣ 𝗪𝗮𝗴𝗲𝗿 𝗣𝗼𝗹𝗶𝗰𝘆 This policy is based on mutual understanding, and compensation is only provided if the insurance company finds the damages worth the claim. It isn’t a written policy and it can’t be enforced legally. 9️⃣ 𝗦𝗶𝗻𝗴𝗹𝗲 𝗩𝗲𝘀𝘀𝗲𝗹 & 𝗙𝗹𝗲𝗲𝘁 𝗣𝗼𝗹𝗶𝗰𝗶𝗲𝘀 Wondering whether a specific claim is covered under the clauses of your insurance policy? Let us help you navigate your claim 👨‍✈️