You may not be aware, but you are likely not covered in the event of a loss or damage to your cargo. When it comes to insuring cargo, a lot of businesses assume that they either don’t need it or that their freight forwarder or carriers will cover the risk.
We want to address some of these incorrect assumptions and show you how important, easy and cost efficient it is to properly insure your cargo.
The Importance of Cargo Insurance
Increase in Claims
Cargo claims have skyrocketed in the last 5 years, mainly due to an increase in marine traffic and global trade, supply chain events and extreme weather conditions.
Lack of Coverage
Today, around 70% of all cargo in transit is either under or uninsured.
Significant Unexpected Losses
The Evergiven Suez Canal incident in 2021 caused more than $2bn in losses alone, most of which were uninsured (General Average was posted, affecting everyone with cargo on board).
Incorrect assumptions
Freight Forwarders’ liability is extremely limited therefore freight forwarders may struggle to be able to help with payments if a claim was to arise. This could lead to shipments not being covered appropriately, if at all. Breeze coverage gives peace of mind providing comprehensive coverage in the event of a loss.
General
Average:
the Silent
cargo enemy
General Average is declared when a sacrifice is taken to save a vessel from loss (e.g. when the captain makes a decision to lose some containers in order to save the vessel).
General Average requires customers whose cargo survived the voyage to compensate others whose cargo was damaged to protect the vessel. Without cargo insurance you may be liable for a substantial out-of-pocket cash amount that would be required to cover the general average costs.
The Solution
Through our insurance partners Breeze, we are able to provide you with “All Risk: cargo coverage for each of your shipments (sea/air/land), including General Average.
Such coverage covers all risks, excluding some risks (as highlighted in the exclusions list). We provide market leading prices with no minimum premiums, based on the commodity type and cargo value.
Capito can offer cargo insurance on a shipment to shipment basis. We provide full coverage flexibility, allowing you to cancel your policy at any point before the arrival date.
For additional insights, refer to the news articles linked below.
Red Sea crisis: BBC Article
Expanding Houthi target area: The Loadstar Article
Breeze's data-driven approach to maritime insurance: SDC Exec Article