Marine Insurance for Specialised Cargo: What Makes It Different

Businesses involved in the import and export of goods understand the myriad risks, from theft to human error, that can have significant financial implications. To provide a sense of security, these businesses often turn to marine cargo insurance, a reliable solution that offers financial relief in the face of potential losses.

Marine cargo insurance is a versatile form of coverage that provides financial assistance for a range of transit-related issues. However, for some goods, a more tailored approach is needed. Here, we will learn in detail about marine insurance for specialised cargo.

Understanding Marine Cargo Insurance for Specialised Cargo

Marine insurance for specialised cargo is a type of cargo insurance policy that offers added layers of protection to special types of goods or products.

These special goods and products are shipped against the unique risks faced by cargo during transit because of their dimension, weight, value and nature.

Such cargo cannot be protected in standard marine insurance coverage; hence, marine cargo insurance for specialised cargo is designed. This type of insurance coverage only covers the cargo but not the vessel or ship carrying it.

What Comes Under Specialised Cargo Insurance

Various marine cargo insurance companies like TATA AIG offer protection to specialised cargo. Businesses that are involved in the trading of goods and services that require special protection can take advantage of this policy.

The nature of risk for specialised cargo may vary depending on the item being shipped and the type of product. Some of the business that requires marine cargo insurance for specialised cargo are:

Beverage Business

Businesses that import and export beverages, such as wine, beer, etc., need specialised cargo insurance. These products are fragile and may face delays related to climatic changes and time zones.

Oil and Gas Business

In the oil and gas business, timely delivery of a product is key to long-term business success. Furthermore, this cargo needs to be handled with extraordinary care and attention. A slight delay in delivery can cause possible financial damage to the business.

Perishable Goods Business

Another business that should consider opting for a specialised cargo insurance policy is those that deal with perishable goods such as frozen foods, fruits, vegetables, etc.

Delays in delivery due to any reason, such as supply chain disruption, flight cancellation, etc., of such cargo can lead to financial loss.

High Value Products

Businesses that deal with high-value products need to consider opting for a specialised cargo insurance policy. Because these products or goods have high market value, any delay, damage or loss to such goods can cause huge financial loss to the business.

Features of Marine Cargo Insurance Coverage for Specialised Cargo

Businesses that want to purchase marine cargo insurance for specialised cargo need to provide documents that support their involvement in dealing with special products like perishable goods, oil and petroleum, etc. Some of the features of marine cargo insurance for specialised cargo are:

• These types of specialised marine policies or voyage policies differ from standard marine insurance policies as they provide protection for specialised goods.
• This type of insurance coverage is exclusively for cargo, not the vessel or ship carrying the cargo.
• Under this insurance coverage, specialised cargo will be covered for damage, loss or expenses incurred by natural and man-made risks such as inappropriate handling, improper packing, etc.
• This type of marine cargo insurance coverage for specialised cargo is time-sensitive. The policy’s validity period is determined based on the vessel’s destination and specified time period.
• Under this policy, the insured value is set at a high level, reflecting the significant financial losses that could be incurred for specialised cargo. This recognition of the value of your goods is a key aspect of marine cargo insurance for specialised cargo.
• The premium of specialised marine insurance coverage is slightly higher than the standard marine cargo insurance cost.

Conclusion

Running an import and export business comes with significant risk. Any delays, damage or losses to cargo can cause substantial loss to the business. Considering these situations, businesses prefer to buy marine cargo insurance.

However, various goods require specialised attention, so marine cargo insurance companies have developed specialised marine cargo policies.

If your business deals with perishable goods, fragile products and more, then you should consider opting for marine insurance for specialised cargo.