Ignore insurance and you risk your business 

Insurance is all about protecting risks, but all too often shippers and receivers view insurance as an expense that they think can be ignored.It is an added cost that they can do without.Instead of paying for insurance too many business people put their trust in the shipping lines and trust to luck that nothing happens. 

You may not like paying for insurance, but if the worst happens and your freight is lost, damaged or stolen, then you will bless the day you paid for the policy. 

Think about it logically. You’ve spent what could be many years in establishing and building your business and prospecting new customers, when at last you have that golden opportunity to supply what could easily be thousands of pounds worth of goods.The chance to make some real money. 

You research and select the right supplier.You inspect and approve the quality and cost of the goods.You carefully choose the freight forwarder to help you arrange shipment. 

The one thing you didn’t do is pay for insurance! 

Over recent times there have been a number of incidents when fire at sea has destroyed entire cargoes.Bad weather has caused containers to be lost.Ships have foundered and cargoes damaged and lost. 

Like it or not, every voyage is a risk … and insurance will protect you against that risk!  So consider the consequences.Such a catastrophe would mean you cannot deliver to your customer or complete your contractual obligations.You will have already paid for the goods before they were released to you.But without insurance protection you have no goods to deliver.No sale to make.No profit to look forward to.All you have are unprotected losses. 

Yes you can hope for the best … but you must always plan for the worst.That means you must have adequate insurance. 

Five reasons why freight insurance is vital: 

  1. Carriers offer minimum liability insurance for goods they carry, but it is often inadequate and settlement can take many years.
  2. In some instances shippers of the containers may be required to pay the cost of relay containers to their bills of lading destination.
  3. There may be a case of carrier negligence, but this will need to be proven by the shipper and consignee. More additional cost.
  4. You, the customer, will need to provide proof of value and loss to the liner.
  5. Cargo theft is often under reported, so extra insurance cover will provide peace of mind. 

Think it can’t happen to you? 
Click on these links to read about recent disasters at sea that nobody thought would affect them. 
BIFA:  https://www.bifa.org/news/articles/2018/mar/fire-ravages-maersk-mega-containership-four-crew-members-unaccounted-for 
Voice of the Independent:  http://digital.worldlogisticsmedia.com/VOTI_86/issue86/index.html