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IT'S YOUR PRIDE AND JOY.
PROTECT IT DURING THE JOURNEY.

Dangerous weather, fire, theft, and mishandling during the journey are risks you face each time you ship. Shipping insurance protects your cargo, covers you from additional losses, and provides a peace of mind.

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Marine Cargo Shipping Insurance

Marine insurance covers your vehicles from the moment they are placed  inside a shipping container and delivered to the port, to the time they are unloaded overseas. Typically your existing auto insurance policy will not cover your vehicle during overseas shipping. Without shipping insurance, your coverage is not only limited to $500 as per the Carriage of Goods at Sea Act, you can be liable for numerous additional charges in case of a General Average ruling. Without insurance, if an ocean carrier calls a General Average during an emergency, you won't be able to retrieve your cargo until charges for storage, salvage security bonds, and general average deposits are paid. 

Reduce your exposure to financial loss with all-risk shipping insurance.

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TOTAL-LOSS INSURANCE

  • Only covers vehicles if they are deemed a total loss during transit
  • Total-loss insurance does not cover minor damage
  • Protects against additional charges due to a General Average ruling
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ALL-RISK SHIPPING INSURANCE

  • Covers any damage during transit by road, rail, sea or air
  • Insures for any errors, scratches, dings, water damage, and more
  • Protects against additional charges due to a General Average ruling



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What are the risks when shipping overseas?

Shipping overseas is generally considered a safe and reliable method to transport goods. It is estimated that out of the 120 million containers shipped each year, just 10,000 are lost at sea. While that is such a small amount compared to the overall volume, would you want to be stuck with the bill if your container falls overboard?

Not only can containers fall off ships due to adverse weather, containers can also be mishandled at the port causing significant damage to the cargo inside. Containers can be dropped, they can be knocked over,  and some can even catch fire due to dangerous goods being shipped.

Here's what happened in 2018 at a container port during a trans-shipment.

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A dock worker mistakenly tipped over a container when moving it, causing half a dozen containers to tumble. The containers fells from up top and crushed the containers on the bottom.

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The container you see here sustained most of the damage.  It also had classic cars inside destined for Europe. Without shipping insurance, the owner of those vehicles would only receive a $500 reimbursement from the ocean carrier.




Why Purchase Insurance?

 

Carrier Holds No Responsibility 

Due to current maritime laws, ocean carriers hold minimal responsibility for your cargo while it's in their care. According to Carriage of Goods at Sea Act, the liability from ocean carriers and freight forwarders is limited to only $500 per shipment.

There's also a marine term called General Average, which allows ocean carriers to voluntarily sacrifice cargo in an emergency. If an ocean carrier declares a General Average, the loss would be shared among the carrier and cargo owners. For example, if a ship is caught in a storm and the crew decides to lighten the ship, the ocean carrier can legally throw cargo overboard and hold the remaining cargo owners responsible for the loss. The carriers have the right to hold remaining cargo on-board hostage until the losses are evenly paid by the remaining cargo owners. 

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In 2018, when the Maersk Honam container ship en route to Suez caught on fire, crew declared General Average as hundreds of containers caught on fire. After the blaze was put out, cargo owners were forced to pay 54% of their cargo value in order to retrieve their containers. Just this year, Hapag-Lloyd had  declared a General Average aboard the Yantian Express when a fire engulfed containers onboard. 

 

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