Secure freight is one of the key features of a successful business, that is part of a logistic chain. As we already know, the trade sector has been a great economic force for centuries. In the world of globalization in which we live and work, there are many unbalanced factors that can delay or even cancel a transfer causing harm to a very large number of people, from producer to buyer and all intermediaries. Cargo Insurance protects the goods during their transportation either via land, sea, air or a combination of the above ways. It can also cover the goods during loading and unloading on their means of transport.
Cargo Insurance covers the goods from damages or losses. It can also cover bulk liquid or solid cargo, specialized or general cargo. In addition, cargo insurance can cover:
- Household appliances
- Industrial products
- Raw materials
- Agricultural products
- Vehicles and other means of transportation
With Cargo Insurance potential risks that may occur during the transport of the goods can be covered. The transportation can be either within Greece, or to goods imported or exported from the country to other countries. It is done with every recognized means of transport (car – ship – plane – train etc). The terms of transport insurance are governed by English Law and the Institute Cargo Clauses and their coverage is briefly described in the following categories:
Coverage provided by transport insurance:
A. Coverage with Clause A (Institute Cargo Clause A – All risks) (against all risks). That category covers all risks of damage during the trip, with the exception of events that are permanently excluded from insurance policies. Examples include fraudulent claims for compensation, contamination with radioactive materials, etc.
B. Coverage with Clause B (Institute Cargo Clause B – concerns named risks). That category covers basic risks, less than Clause A.
C. Coverage with Clause C (Institute Cargo Clause C – concerns named risks). That category covers key risks, ie the assured will be reimbursed if specific events occur. The events have to do exclusively with specific risks such as:
- Land Transport: fire, collision, overturning, deviation from the course (derailment or diversion from the road) etc. relative risks of accident (accidental event, independent of one’s will, with direct consequence of material damage to the insured objects).
- Sea Transport: fire, grounding, sinking, collision, participation in a general average, etc. related risks arising from an accident (accidental event, independent of one’s will, with the direct consequence of material damage to the insured objects).
Of the above clauses, the most commonly used are Clause A & C. In addition, these clauses can be extended with individual insurance coverages such as: war risks, strikes, malicious actions, label cover coverage, etc., according to your needs.
Finally, it is possible to insure cargo for an individual transfer from one point to another or alternatively, for those who are interested in transporting cargo for more than once, there is the possibility to be insured with Open or Block Policy contracts.
For more information regarding cargo insurance contact us