For any business involved in global trade, watching a container of goods leave the warehouse is a moment of both progress and risk. From the moment it’s loaded until it reaches its final destination, your valuable cargo is exposed to numerous perils—from rough seas and accidents to theft and damage. This is why securing the right marine cargo insurance in UAE is not just a safety net; it’s a strategic necessity.
But with various policies and complex clauses, how do you choose the right one? Here’s a guide to help you navigate the process.
1. Assess your cargo and shipping frequency
The first step is to understand what you’re protecting. Ask yourself:
- What is the nature of my goods? Are they fragile, perishable, hazardous, or high-value? The type of cargo will determine the level of risk and the coverage needed.
- How often do I ship? If you only ship goods occasionally, a per-voyage policy might suffice. However, for businesses with regular shipments, an annual or ‘open cover’ policy is far more efficient and cost-effective, providing automatic coverage for all shipments within that period.
2. Understand the scope of coverage (institute cargo clauses)
Marine insurance isn’t a one-size-fits-all product. The coverage is typically defined by the Institute Cargo Clauses (ICC), which come in three main tiers:
- Clause (C): The most basic cover, protecting against major events like fire, explosion, vessel stranding, and collision.
- Clause (B): Includes everything in Clause C, plus additional risks like earthquakes, volcanic eruptions, and water damage from sea, lake, or river water entering the vessel.
- Clause (A): The most comprehensive “all-risk” coverage. It covers everything in B and C, plus most other accidental damages or losses, with only a few specific exclusions (like wilful misconduct or ordinary leakage).
Choosing between A, B, or C depends on your risk appetite and the nature of your cargo. High-value or fragile goods almost always warrant Clause A coverage.
3. Don’t overlook exclusions and deductibles
Every policy has exclusions—risks that are not covered. Common exclusions include losses due to improper packing, inherent vice (natural deterioration of the goods), and delays. It’s crucial to read the fine print and understand what isn’t covered. Additionally, be aware of the deductible (or ‘excess’), which is the amount you’ll have to pay out-of-pocket before the insurance kicks in.
4. Partner with an expert broker
Navigating the complexities of policy types, clauses, and international regulations can be overwhelming. This is where a specialized marine cargo insurance broker becomes your most valuable asset. An expert broker doesn’t just sell you a policy; they act as your risk advisor.
At Colemont, we specialize in this field. Our team works for you, not the insurance company. We start by understanding your business and its unique risks, then leverage our market expertise to find the most suitable and competitively priced policy. We help you decipher the jargon, ensure there are no dangerous gaps in your coverage, and stand by you to manage the claims process if the worst happens.
Choosing the right marine cargo insurance is a critical business decision. Don’t leave it to chance.
Protect your shipments and your bottom line. Contact Colemont today for a professional consultation and let our experts craft the perfect marine cargo insurance solution for your business.