6 Reasons why you should have it if you import or export.
1) You may be responsible for all loss and damage during the entire voyage, even before delivery. E.g. under FOB Incoterms an importer is responsible from the time the goods are loaded aboard the vessel.
2) Carrier’s restrict their liability for loss or damage to an amount per tonne. For example, Hague Visby 2 SDR’s per kilo or weight. As of 26/10/20 – 1 SDR= £0.92
3) Freight forwarders restrict liability typically to 2 SDR’s per kilo, or 666.67 SDR’s per package, whichever the lesser.
4) Every one benefiting from a sacrifice of cargo to save the adventure must pay their share of this due to what is called ‘General Average’. GA is included in cargo insurance cover.
5) Salvage Charges. These are awarded in accordance with the skill level required to carry out the salvage. These costs are borne by cargo owners and must be paid before release of the cargo. Salvage award can reach 80% of the value of the cargo and will be paid by cargo insurers if cargo insurance has been taken out.
6) Mercari Risk Management Ltd is a specialist in marine insurance. For great terms and expert advice visit www.mercaririsk.com