What is Marine Transit Insurance?
If your business take you across the seas, you can be exposed to risks from mother nature, misadventure and even piracy.
Suck risks can prevent your commercial vessel, cargo or truck from reaching its destination, or cause costly damage during the voyage.
Marine Insurance refers a range of insurance products which help protect your business from loss or damage to vessels and cargo. It can cover the door to door delivery of goods worldwide, by the sea, road, rail and air- including their storage on the way.
Who should consider it?
Marine transit insurance is important for businesses involved in shipping or receiving goods, operating watercraft commercially, repairing vessels, running a marina and more.
Marine insurance can provide valuable cover on both land and sea for:
- Importers and exporters
- Marina owners
- Mining companies
- Tourism operators
In FY2017, the value of Australian exports of goods and services was A$373.2 billion. That represented an increase of A$53.7 billion on the previous year’s outcome. – Australian Trade Commission, Australia’s Export Performance in FY2017
What can it cover?
There are different types of marine-related insurance policies – the type you choose will vary based on your specific needs. Depending on the type of policy you choose, marine insurance policies can cover:
What usually isn’t covered?
Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer. Policies generally won’t include cove for:
- Consequential Loss/Loss of Market
Kerri runs a small business that exports organic cheeses from Australia to Asia. It’s a new business, so she works very hard to provide quality products and build her client base.
Recently, a shipment of her cheeses that were going to a new client was left on the dock unrefrigerated – and the cheeses were spoilt. Not only did Kerri lose valuable product, but she also missed out on the repeat business of the new client.
Thankfully, Kerri had marine transit insurance, which covered her products from the time they left her business until they were in her client’s possession. While her insurance didn’t help her keep the new client, at least the insurance reimbursed Kerri for the cost of the cheeses that were spoilt.
This information is provided to assist you in understanding the terms, implications and common consideration in the marine transit insurance. It does not constitute advice, and it not complete, so please discuss full details with your Steadfast insurance broker.