Why You Should Purchase Florida Marine Cargo Insurance

Why You Should Purchase Florida Marine Cargo Insurance

The main reason to purchase Florida marine cargo insurance is to reduce your exposure to financial loss. As an exporter who hasn’t been paid for the goods at the time of shipment, or an importer who has paid for all or part of the goods prior to receiving them, you’re running the risk of suffering a financial loss if those goods are lost or damaged during transit.

Additionally, by purchasing insurance, your insurance company assumes the responsibility and can usually expedite the release of your cargo, otherwise you may be required to post a bond and/or cash deposit in order to obtain release of your cargo following a general average even though there was no loss or damage to your goods.

What are INCOTERMS?

Ocean cargo insurers use INCOTERMS to determine the extent of your insurable interest in each shipment. INCOTERMS are a set of internationally recognized trade terms published by the International Chamber of Commerce, which define certain obligations and responsibilities of the seller and buyer to each other on goods moving in international trade. In general, the portion of transit during which you are responsible for loss or damage to the goods represents the extent of your insurable interest.

Anything can happen in transit, from natural disasters, to theft, damage, train derailment, accidents, fire, containers falling overboard, collision or other problems. Ocean cargo insurance policies are designed to insure those shipments on which you bear the responsibility for loss or damage during the “main carriage” portion of international transit while your responsibility for loss or damage exists.

Important considerations in selecting an insurer are:

  1. The company’s financial health and claims paying ability. Firms such as A.M. Best, Moody’s and Standard & Poor’s provide ratings of insurance companies
  2. The company’s reputation for fair and prompt settlement of claims and their aggressive pursuit of subrogation
  3. A full range of loss control and risk management capabilities
  4. A full range of automatic coverages to meet your basic requirements
  5. The knowledge and expertise to recognize and craft specific coverages for your unique needs
  6. Worldwide underwriting, claims, subrogation and loss control capabilities, and
  7. A willingness to listen and positively respond to your concerns

As an importer or exporter working in this state, you can’t afford to do business without Florida marine cargo insurance. Speak to a reputable agent today.