Home Uncategorized The do’s and don’ts of marine insurance

The do’s and don’ts of marine insurance

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If your business involves shipping goods locally or overseas, whether inland or across the ocean, you need to realize that the moment those goods leave the door, they change hands. many, many times, and we don’t know what can happen.

To protect your property and your business, you must have marine insurance. But how to choose the right one? Here are some do’s and don’ts:

NOT TO DO

1. Do not confuse marine insurance with boat insurance. Boat insurance protects boats and their passengers. It’s like car insurance, except the car floats on water.

Marine insurance is an entirely different banana. Despite its name, it is not limited to the protection of ocean freight. It also protects the cargo transported on land, in addition to protecting the ship carrying the cargo.

That is why there is such a thing as “dry” shipping, for cargo transported over land, as well as “wet” shipping, for cargo shipped via real ships.

2. Don’t lie on your application form. Also, don’t conceal relevant information. There’s a fine line between the two: lying on your form means you deliberately provided the wrong information. Withholding information means that it was not mandatory for you to disclose the information, but you know that disclosing it would adversely affect your policy.

Either way, if it were to be discovered that you lied or withheld relevant information, it would most likely void your policy, defeating the purpose for which you purchased the insurance in the first place.

3. Don’t break your warranty. In insurance law, the guarantee is fundamental for the performance of the contract. In the event of a breach, the non-offending party may terminate the contract in addition to claiming damages.

A common implied warranty in marine insurance is the seaworthiness (or seaworthiness) of the vessel.

Be aware that if a warranty is breached, this will not help the insured to remedy the warranty; the policy will be rendered null and void regardless.

So, before purchasing a policy, make sure you know all the guarantees included and make sure you are not violating any of them. Which brings us to our first action…

Since

1. Read the fine print. Although the fine print can be tedious to read, we all know – some from painful experience – that ignoring it is like parking under a construction site: it’s only a matter of time before something hard and heavy hits you in the head, and you can’t live to regret it.

The thing is, unless you’re a first-grader learning to read, it won’t take you five minutes to read the details of the contract you’re entering into. (It doesn’t matter if it feels like an hour – it really isn’t.)

The fine print will tell you details of what you are paying for, rights you have that you may not have been aware of, conditions that are not covered by your policy and actions that will render your policy void and void. . For example, poorly packaged goods are generally not covered. Dangerous items such as fuels, firearms and chemicals are also not. Others may not cover food, wood and animals. There may also be browsing limits which, if exceeded, will void your policy.

2. Compare policy offers. And don’t rely on price alone.

Perhaps the reason this policy is so cheap is that it only covers the actual value, which is the value of your insured item at the time it was lost – and that includes depreciation, so you’ll end up probably getting a lot less than you expected.

On the other hand, this other policy may cost more, but it insures your item for the amount you had agreed (agreed value), on paper, so when the item is lost, you are compensated for the exact amount that you’re waiting. , which will allow you to immediately replace the lost item with a new one.

What about the causes of loss covered by the policy? Unregistered policies only cover specific types of loss and may not cover natural disasters. Then again, maybe they do.

Read the fine print to find out exactly what you’re paying for. Just because it’s the cheapest marine insurance politics doesn’t mean it’s the best. And if you’re in business, you should know that you should only invest in the best, or suffer losses later.

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