Marine Cargo Insurance And Potential Hazards

An ocean is not just a mass of water. It creates opportunities by connecting continents. Oceans provide the cheapest way to transport goods between continents. However, your vessel is exposed to many hazards that can lead to loss of goods and even loss of vessels. If you want to combat these risks, you must invest in marine transit insurance. There are many marine transit insurance companies in Australia. Before you start looking for a company that can understand your unique requirements and offer the right product, you need to be aware of hazards that can cause damage or loss. 

Geographical and Weather Hazards

Sea freight is exposed to many serious threats due to cyclones, typhoons, hurricanes and other natural calamities. This can cause damage to the goods your vessel is carrying. This can also cause serious damage to your cargo vessel.

In addition to weather hazards, geographical hazards can also damage your cargo vessel. Titanic is not the only example. You can avoid these risks by using ships with watertight doors and strong steel. Equip your vessel with technologies that can detect storms. Your crew should be well trained to navigate safely by avoiding sandbars, icebergs and other geographical hazards. There are some water conditions that you should avoid. 

However, it is not easy to predict what nature is going to do even when you are using the latest technologies and all the preventive measures. Therefore, get the safety of marine transit insurance that covers damages and financial losses due to weather and geographical hazards. When it comes to these hazards, the transit insurance protects you against

  • Washing overboard
  • Lightning
  • earthquake
  • volcanic eruptions
  • Entry of water into your vessel

Man-made Hazards

Your vessel may be exposed to these hazards due to lack of experience, negligence and bad intentions. Man-made hazards can also lead to serious damages and losses. This may happen during loading or unloading of goods. Many times, inexperienced workers do not know how to properly handle goods at the time of loading or unloading. Marine transit insurance covers damages and losses due to human hazards. 

Packing Hazards

You have properly packed and loaded goods to ensure safe delivery. However, when the vessel reaches its destination, the buyer refuses to accept the delivery as goods are damaged due to improper packaging. The buyer may also file a lawsuit against you. Now you are left with damaged goods and a lawsuit against you. If you are carrying proper marine transit insurance, your marine transit insurance company is there to help you. Some hazards can be because of the material you are transporting. 

This insurance is not only a legal requirement but also has many benefits to offer. However, you need to choose the right company for insurance.

First of all, work with a company that can understand your unique requirements. You need a tailored insurance plan for complete protection against all types of hazards. If an undesired event takes place and your insurance does not cover damages or losses due to that event, you don’t get any benefit from the insurance plan. So, complete coverage is a must.

Imagine your vessel hit a storm that caused serious damage to the goods. Now you have filed a claim. However, your insurance company is taking months to process your claim. This should not happen. The investigators or evaluators of the company should collect the required information and evaluate the claim on time. The company needs to protect itself from insurance fraud. So, it takes time to evaluate and process your claim. However, this doesn’t mean the process should be slow. Read online reviews to know what the existing clients have to say about the insurance company.