Why Most Companies Use Brokers to Buy Marine Cargo Insurance

a loaded cargo ship

Getting Marine cargo insurance is an appropriate method that is employed to protect the value of your goods from any unforeseen circumstances or physical damage, or theft. Cargo insurance should be always included for all shipped goods without get damage material. Most business companies use Brokers to Buy Cargo Insurance.  According to the law, the brokers act as fiduciaries and represent the customer, not the insurance company. 

Also checkout:  How to lower cost of car insurance?

 Top Companies Use Brokers to Buy Cargo Insurance 

  • Purchasing a marine cargo insurance plan is a complicated task. Making all of your insurance decisions yourself is tough and confusing. In addition, the entire responsibility of getting it right will depend solely on you.
  • But Working with a professional insurance broker means your business company has an insurance expert able to handle risk also who can guide, advise your company and help you make the right buying decisions according to your budget
  • They guide you on what coverage to buy, and what risks to cover along with advising you what you need not buy. 
  • Filing a claim can be a very challenging and stressful process especially if you have never made one before. 

  The benefits of professional brokers 

  • Insurance brokers are experts in various areas of insurance including coverage, pricing, and risks to the supply chain.
  • They help the companies to purchase  cargo insurance  and transit insurance plans
  • Insurance  brokers are experts as they offer valuable advice on what types of insurance will be most  apt for your needs 
  • They are well-positioned to offer advice on not only the right insurance products for your business needs but the appropriate level and amount of coverage.
  • Focus on getting the right transit and freight insurance cover for your business needs at the best competitive price. 
  • They save your time as they help to obtain quotes from top shipping insurance companies. You need not visit multiple websites inputting your specific details time and again or spending time on the phone with different insurers. 
  • They work to get online cargo insurance at good discounts and clinch the best deal.
  • Insurance brokers also provide you with correct information and documentation. 
  • Reputed brokers also work with numerous insurers. They develop good relationships with them.  Hence the business companies gain confidence that they can access the market in the best possible manner.
  • Insurance brokers support and guide your business company through the entire claims process.
  • Reputed brokers focus not only on risk management but claim support as well.

 Opt for insurance brokers  

  • Many people are of the view that working with an insurance broker is outdated, time-consuming, and complex. 
  • In this internet era, it is a common notion that it is much easier and convenient to go online and handle your insurance tasks yourself. 
  • But transit insurance needs are quite complex and intricate. It involves numerous risks. You  also need to have in-depth knowledge  regarding Marine Cargo Claims in case of eventualities  
  • Also, you need to be aware of complex features of cyber protection, or terrorism insurance, or issues that can arise out of a global pandemic.   
  • You have to be competent to make the right insurance decisions. Experienced insurance broker offers the necessary guidance and advise

Also, you may be able to find a cheaper price for cargo insurance plan as you research online. However, there is a possibility that the level of cover will be compromised and will not be adequate. It is seen that underinsurance can create a lot of hassles when it comes to insurance and these surface only when you need to make a marine cargo claim. Thus, shippers need to purchase a shipping insurance plan in the insurance market from reputed providers

How to claim Cargo Insurance

Collect important documents 

  • Submit a Letter of Assignment corroborating your legal right to claim.
  • Make a Packing List.
  • Make a Commercial invoice.
  • Send pictures of  Damaged  cargo  or container
  • Describe the  type of damage whether water damage  or  physical damage  or  reefer damage or loss  due to cargo pilferage 
  • The commercial invoice value of  freight, 
  • Copy of cargo insurance 
  • Survey report
  • Proof that you alleviated loss (salvage invoice) 
  • Evidence  if the cargo is a total loss destruction certificate

 Time limitations 

  • All claims are subject to limitations of time. 
  • If it is not possible for the claim to be resolved within the limitation of time, request an extension of time. The countdown begins with the day of delivery at the receiver’s warehouse.

It is important to buy an all-inclusive marine cargo insurance policy from reputed shipping insurance companies since they offer the best discounts on their plans.

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