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  • Amanda Bird

What You Need To Know about Marine Insurance

Updated: Nov 23, 2021

Transporting goods comes with many different risks. Accidents, calamities, human error, vandalism, and other unexpected occurrences can cost a company a significant amount of time, money, and other resources. Fortunately, insurance can provide businesses with a financial safety net.


Companies need insurance to help cover property damage and claims. Without insurance, businesses may have to pay for costly damages and legal claims at their own expense. In some cases, it can be a financially devastating scenario for the owners and stakeholders.


People who are in the business of transporting goods are no stranger to this, which is why it is essential to keep the goods safely transported from one place to another. Should there be anything amiss, they also need to have a backup plan to mitigate risks. That is where marine transit insurance comes in.


What Is Marine Transit Insurance?


Marine transit insurance is a policy that covers the transport of goods from one destination to another, whether imported or exported. It protects products against loss or damage that can occur during transit. One prevalent type of this insurance is an open cover policy.


What Is an Open Cover Insurance Policy?


An open cover policy is a type of marine insurance that covers an indefinite number of dispatches. It can be helpful for bulk commodity traders, fleet owners, and other businesses in the cargo transport industry because it allows companies to forgo the need to take out individual policies for each departure.


The underwriters have to insure all shipments on an “agreed value” basis. This policy can cover both imports and exports, and it remains open until the company cancels or they’ve reached the agreed-upon sum.


What Does It Cover?


Marine insurance covers the property in transit all throughout its journey, including packing, loading, transportation, storage, and unpacking. It compensates for items that are damaged or lost because of mishandling, accidents, thefts, calamities, explosions, and other unprecedented events.


Things You Need to Consider about Marine Insurance


1 - It Keeps Goods Safe


Marine transit insurance is useful in covering loss or damages of cargo, ships, and any transporting vehicle by which an item is shipped. Although the goods are still susceptible to damage and theft, the coverage allows you to get compensation if unexpected events occur.


2 - It’s a Necessary Purchase


Acquiring marine insurance is crucial if your goal is to keep your shipment safe and want to save time your time and resources. Your company can suffer financial losses without it.


3 - It Offers Protection against Calamities


Marine transit insurance offers protection from both natural and also human-caused calamities, including floods, fire, earthquakes, and even loss from theft.


Who Can Purchase This?


Marine transit insurance can be bought by anyone who engages in buying and also selling goods. It offers several solutions to your business needs. If you have a business that requires constant delivery, you may want to consider this insurance policy.


Conclusion


Marine insurance is a necessary policy that covers both imported and exported goods. It protects businesses against significant financial losses and prevents them from wasting their resources. It’s best to get one today if you want to protect your enterprise!


As your trusted insurance partner, we at New Wave Insurance are here to protect the financial future of your business. Our team of experienced Gold Coast insurance specialists and in-house insurance brokers work hard to provide personalized risk advice and smart, cost-effective insurance solutions for you. Contact us today!


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