Is insurance on your goods necessary? In a word, yes.
Countless companies (especially those that have been importing for a long time) believe that they do not require insurance on their freight and adopt the “it’ll never happen to me” attitude.
Unfortunately, in the world of importing and exporting, there are many scenarios that can lead to potential financial losses and possible freight damages.
A recent report showed that one importer would be involved in a general average claim once every eight years. What’s “general average” you ask? If a cargo ship’s master voluntarily sacrifices the cargo, equipment or funds from the ship to save the voyage, then all parties involved in the venture (including all cargo owners) are required to make a proportional contribution to cover the costs incurred. In basic terms, if something happens to jeopardise the vessel (think catastrophic fire, vessel sinking or other life threatening event) the master of the vessel – as a last resort – may have to jettison (throw overboard) cargo in order to stabilize the vessel. All owners of any goods on the vessel are responsible for contributing to the loss of cargo and any repairs that may be required to the vessel.
General average also covers the event of massive out of pocket expenses to the ship’s owner in the event of massive breakdown (engine replacement, towing costs, repairs, dry docking, etc).
But it’s not just these events that you require insurance coverage for. If your cargo shifts during transit and is rendered useless or the truck moving your cargo from the wharf to your premises has an accident and damages all your freight to become worthless – these are all instances that would require you to ensure that your goods are covered by insurance.
EES Shipping have comprehensive insurance which covers cargo in our control, but without your own personal insurance to head a claim, the claims process is often a very lengthy and costly exercise (recent claims have taken from 3-6+ months to be processed and EES Shipping also have a $2,000 excess per claim, which must be covered by the owner of the goods).
A simple insurance claim might involve the insurance companies of the:
Shipper (poor packaging / packing)
Origin Agent (poor handling of goods)
Destination Agent (EES – acting on your behalf)
Destination Transport Co (road accident)
Destination CTO/CFS (poor handling of goods)
But, with your own insurance, you would have full transparency and your company would be paid quickly and in full value of the damaged / lost goods (less your own excess). Your insurance company would be fighting the good fight behind the scenes on your behalf.
You don’t drive your car without coverage, why would you ship your precious cargo around the world without it?
Why don’t you contact us today for a competitive and comprehensive insurance quote for your shipments today.