Why is it a good idea to insure your shipment?

It is very important to understand what risks can be expected during transportation. But what is needed to avoid any difficulties? You need a reliable carrier, thorough preparation and insurance. Only insurance will help you reduce financial losses if something happens to your cargo or the entire delivery. Let's consider how profitable insurance is now and how to make smart protection for your business.

State of Marine Insurance: Latest Data

The maritime industry is undergoing dynamic changes. Insurance is an essential tool for the security of your business, so it must keep up with the changes to protect your cargo. According to forecasts from the International Marine Insurance Union, geopolitical tensions, attacks in the Red Sea and the Russia-Ukraine war will be the main challenges this year. But they are also concerned about the number of ship fires, which could complicate multimodal and intermodal transportation. 

Here are the main conclusions that can be drawn from their report on the cargo insurance situation for 2024:

1. The cost of insurance on some routes and types of cargo has increased due to higher risks.

2. Casco payments for an insured event increase due to demand and the profits of insurance companies.

3. The number of insured events does not increase in proportion to the increase in activity at sea.

4. The loss ratio in recent years has hit its lowest point since 2017.

More and more carriers are choosing reliable insurance, and not only because of the possible risks on their way. The insurance market is paying more attention to cybersecurity, new technologies for assessing risks for business cases, comprehensive marine coverage, special offers for certain products. All this together increases the value of insurance in the eyes of their customers.

The maritime industry is undergoing dynamic changes. Insurance is an essential tool for the security of your business, so it must keep up with the changes to protect your cargo. According to forecasts from the International Marine Insurance Union, geopolitical tensions, attacks in the Red Sea and the Russia-Ukraine war will be the main challenges this year. But they are also concerned about the number of ship fires, which could complicate multimodal and intermodal transport:

Here are the main conclusions that can be drawn from their report on the cargo insurance situation for 2024:

1. The cost of insurance on some routes and types of cargo has increased due to higher risks.

2. Casco payments for an insured event increase due to demand and the profits of insurance companies.

3. The number of insured events does not increase in proportion to the increase in activity at sea.

4. The loss ratio in recent years has hit its lowest point since 2017.

More and more carriers are choosing reliable insurance, and not only because of the possible risks on their way. The insurance market is paying more attention to cybersecurity, new technologies for assessing risks for business cases, comprehensive marine coverage, special offers for certain products. All this together increases the value of insurance in the eyes of their customers.

Stress-free logistics: important points when it comes to insurance

To insure your cargo as efficiently as possible, you should approach this process correctly. Much depends on the direction the cargo is going. For example, insurance in China is very complicated. This is due to frequent frauds with the insurance of various cargoes, so you need to cooperate only with proven companies and carefully monitor the characteristics of the cargo in the documents. And in European countries, there is a mandatory requirement for insurance to meet certain criteria.

Each cargo also has its own characteristics when it comes to insurance, but there are general points of the insurance policy that you need to remember:

1. Comprehensive coverage. There are different types of insurance, from general to specialized conditions. So make sure your policy includes everything you need for your case.

2. Exclusions. Always check the list of insured events and when payment is not provided.

3. Deductible. In the event of an insured event, a certain amount is paid by the client himself. This amount can be fixed or variable. It can also affect the final insurance benefit.

4. Claims review process. Find out the insurance company's terms and conditions, and the timeframe for review and payment. 

5. Responsibility of the parties. Understanding who bears responsibility and what will help avoid disputes. 

If you follow these points, you will be able to ensure the best insurance conditions. But during transportation, various situations can occur. Therefore, it is important to know what to do in such a case. When you are a client of a logistics company, you need to be in touch with your manager. You will be provided with all the important information and will be accompanied throughout the entire process. 

In the event of a similar situation, when something happens to your cargo after international delivery, use the following algorithm of actions:

1. Record damage or loss of cargo and leave everything unchanged

2. Contact your manager and insurance company

3. Wait for the surveyor to arrive to document the losses

4. Get official documents

5. Monitor the proceedings

With the right approach to insurance, you can be sure that your cargo is protected no matter what. Use reliable partners to get the best for your business.