More containers are now being lost or damaged. Here’s why having the right goods insurance is so important.

How do you protect your business against the costs of goods that are lost, damaged or delayed in transit? It all comes down to having the correct insurance.

Over the last 18 months, businesses have seen a huge increase in online orders, largely due to the restrictions brought in to combat COVID-19. The UK’s top 100 retailers recently said that their online traffic increased by 52 per cent on average during the pandemic. 

Pressure on the global supply chain is increasing

That jump in online orders has put increasing pressure on a global logistics network that was already vulnerable to disruption. 

The recent incident in which the Evergreen container ship blocked the Suez Canal – and the subsequent global delivery delays and shortages – is a prime example of the fragility of the goods delivery infrastructure our businesses depend on. 

To protect your business from the risks of goods being damaged, delayed or lost in containers en route, you need the right insurance.

Marine cargo insurance

Although it’s called marine cargo insurance, it actually covers the risks your goods face whether they’re travelling by road, rail or air. And in many cases, having it will be a contractual requirement of any sale.

Why is it so important to have the right kind of insurance?

Firstly, a common misconception is that the hauliers and freight forwarders you use have their own insurance in order to cover your cargo. However, their insurance only protects them against any legal liability for loss or damage. 

Crucially, this means it is not there to pay out for the full value of any cargo that is lost or damaged. That value could be substantially more than they are covered for. You might also want to consider buyer’s or seller’s contingency cover, which covers your contingent financial interest in any goods.

Marine cargo insurance also protects you from General Average, a principle of maritime law that requires all sea cargo stakeholders to evenly share any damage or losses that may occur, if the crew of a ship sacrifices cargo in order to save the vessel in an emergency.

Taking out the correct maritime cargo insurance cover through a UK-based broker like L Wood puts you in control. If the worst happens to your cargo, you’ll be able to deal directly with a broker who you know and trust.  

To find out more about how we can help you to protect your cargo with the right insurance, call us on 01274 515 747 or email us at mail@lwood.co.uk.