The first step for many businesses seeking to operate abroad usually involves the transport of goods internationally. Initial shipments are often vital to the success of the venture, so protecting them in case of a catastrophic event is as important as getting the shipments to their proper destination. This is especially relevant considering the recent natural disasters that have affected the shipping trade. Carriers who write Ocean Cargo have suffered a spate of heavy losses, and as a result are actively seeking to narrow their exposures. Ocean Cargo Insurance is subject to less stringent regulation than other types of coverage as state regulators do not require rate and form filing. This means that underwriters are free to change anything they can, leaving open the possibility of gaps in coverage. One such example is a Warehousemen’s Endorsement, if this endorsement is not included, it could limit the coverage that you have at your overseas warehouse.
An independent Risk Advisor can work with your company’s senior management to identify the risks involved in shipping goods internationally and ensure you have adequate coverage. At The ALS Group we take a three-dimensional approach to risk, by looking at our clients’ organizations’ Total Cost of Risk (TCoR) and going beyond insurance placement.
If you’d like more information on Ocean Cargo coverage or mitigating other risks of doing business abroad, please contact our Managing Principal, Albert Sica, at 732.395.4251 or at [email protected].
