DO YOU IMPORT OR EXPORT GOODS FROM/TO OVERSEAS OR MOVE GOODS WITHIN THE UK?

 

If so:

• Who is responsible for insuring the goods in transit?

• Are the goods insured for their full value?

• What cover is provided (or what claims are paid)?

• Who is the insurer?

• Do you think the haulier carries insurance on your behalf?

 

If the answer to any of these is "I don't know" you must take action!!

The insurance of imports and exports, known as Marine Cargo Insurance can be a complex subject. Purely by the varying nature of the territories involved, their culture, legal and contractual idiosyncrasies, and not forgetting the sheer geography of the world.

 

However, Marine Insurance as the oldest form of insurance, and one which has been dominated by the U.K. Insurance Industry, which means you have access to the most experienced and competitive market in the world.

 

Despite this, many companies leave it to 'the other side' to make all or part of the insurance arrangements for them. This can be unnecessarily expensive. Furthermore, they may find themselves with limited cover and an unforeseen financial exposure, such as no cover for breakage to goods whilst in transit. In the event of a claim they could also have to deal with an Insurers overseas agent, who they can exert little pressure on.

 

Arranging an annual cover for the movement of your client’s goods can be surprisingly simple, involving little or no extra work, and a minimum of administration.

 

Arranging Marine Cargo Insurance can bring considerable advantages to your client: -

 

• Cost saving, competitive rate

• Added value service for your customer i.e. they do not need to worry about the insurance aspect

• Loss prevention techniques can be available from your insurer

• Changes, amendments, and extensions of cover can be easily organised

 

Rather than a foreign insurer acting for their supplier or customer………not to mention your 'peace of mind'!

 

BENEFITS OF A MARINE POLICY (GOODS IN TRANSIT) GIT SECTION WITHIN PROPERTY/COMBINED COVER

 

• Wider cover, same as Marine Cargo cover.

• Higher limits available

• Seamless policies for import/export, stock, GIT risks - stock throughput

• Flexible, competitive pricing

• Transit insurance expertise

• Strikes cover included (covers terrorism)

 

COMMON TERMS OF SALE/PURCHASE - INCOTERMS

 

CFR – Cost and Freight – is an INCOTERM describing the contract situation where:

• The seller must pay the costs and freight necessary to bring the Subject Matter Insured to the named port of destination; and

• The buyer assumes risk of loss or damage to the Subject Matter Insured, as well as any additional costs due to events occurring after the Subject Matter Insured have been delivered on board the vessel when the Subject Matter Insured pass the ship’s rail in the port of shipment.

 

CIF – Cost, Insurance and Freight – is an INCOTERM describing the contract situation where:

• The seller is obligated to get the Subject Matter Insured delivered to the carrier at the named port of departure. The seller must also arrange the insurance, any export permits, licenses and the contract of carriage. However once the goods are loaded onto the vessel the risk of loss passes to the buyer.

 

EXW – Ex-Works – is an INCOTERM describing the contract situation where:

• The seller fulfils their obligation to deliver when they make the Subject Matter Insured available at their premises (i.e. factory, warehouse). The seller is not responsible for the loading of the Subject Matter Insured and is not responsible for export clearance.

• The buyer has to bear all costs, including freight costs, and risks of loss of or damage to the Subject Matter Insured from that point.

 

FOB – Free on Board – is an INCOTERM describing the contract situation where:

• The seller fulfils their obligation to deliver when the Subject Matter Insured has been placed over the ship’s rail at the named port of shipment; and

• The buyer has to bear all costs, including freights costs, and risks of loss of or damage to the Subject Matter Insured from that point.

 

We have access to all the leading UK marine insures and are able to provide you with the correct cover and insurers to meet your requirements, if you prefer to discuss this in more detail please don’t hesitate to contact SMI.