Things you should know about marine cargo insurance
Any business that involves shipment of cargo overseas should consider investing in the most reliable marine cargo insurance. In fact, even the business that involve shipments transported through inland seas would benefit from cargo insurance. The key is to examine every opportunity at hand and to pick an insurance that comes with transparent policies and easy insurance claim processes.
If you are looking for marine insurance in Singapore, you should consider Allegiance Associates Marine Insurance. They cover both Marine Cargo and Marine Hull insurances. You should definitely look them up here if you are serious about protecting your marine goods or properties: https://www.allegiance.com.sg/commercial-insurance/marine-insurance
Accidents are prone to occur
Even the most secure shipment companies are not accident free. Any accident small or big might in turn impact the commodity being shipped. Such mishaps might result in the damage of the commodities or might cause delays and additional expenses. All such instances would disappoint customers. Even the most financially stable business would require a good cargo insurance in order to tackle such situations. While hull insurance covers any issues or damage that occurs with the machinery transporting the cargo, cargo insurance covers the damage occurring on the cargo.
Focus on honesty
Knowing about the type of cargo being handle would help the insurance provider frame the right policy. One mistake that many businesses make is to conceal the details of the cargo being shipped. There are some products that are considered high risk and some insurance providers might hesitate to cover them. If absolute honesty is now maintained then there might be issues in the underwriting process. Regulations in the state would be another factor that determines whether the business is high risk.
Choosing between FPA and all-risk
For marine cargo insurance there is FPA (free of particular average) and there is full risk while selecting the type of policy. The former offers a limited coverage but if you are looking for full coverage then the latter would be a perfect choice. These are the two main types of policies that cargo insurance companies offer. Being a comprehensive choice all risk coverage is one of the safest options for businesses that involve critical shipments. FPA is one of the most commonly available options which can be given on predefined perils. And almost every business would be able to avail this type of policy. But for a full coverage there would be a more stringent scrutiny.
Besides the mentioned categories in marine cargo insurance there is also marine hull insurance and a handful of other marine insurance choices. So businesses big and small should be clear about the type of coverage required, and make a decision based on the costs spent on the shipment and the modes of shipment chosen.