Check the exclusions in traditional marine polocies

The perishable industry demands cover beyond a traditional marine cargo policy, says Jeffry Butt, marine manager for Aon South Africa. And these insurance products are available. “It is about going beyond the traditional underwriting philosophy and about paying more attention to the risk management aspect of the business,” he told FTW. He says transportation and risk management remain the focus in the perishable industry where attention to detail has to be a top priority as the cargo can easily spoil if not handled with utmost care. To ensure quality all round, the packaging materials used for the packing of perishables inside containers must also be of high quality and strong enough to support a stack without collapsing. Most packaging is resistant to the moisture that these products generate and the industry is always on the lookout for new developments in the packaging of produce. He pointed to a definite increase in the movement of live and fresh seafood. “It is growing at a fast pace as the demand for this type of food has doubled over the past few years.” “Irrespective of economic recession, perishables still remain an essential commodity worldwide. South Africa remains a top citrus supplier in today’s competitive global market and is the world’s second largest citrus exporter,” said Butt. “Specific perishable product knowledge assists insurers in the underwriting of perishable product risks. Insurers need to consider the various cold chain requirements which include product-specific packaging to ensure product integrity, accurate temperature control and timing while in storage or during transit, humidity f luctuations, timely delivery and handling conditions as well as the various modes of transport as each mode involves unique transit risks.” Butt said it was imperative to ensure that goods that are shipped cross-border and are subject to Customs clearance are approved by Customs in time to avoid delays – and delay is an absolute exclusion in terms of one’s conventional marine cargo policy. INSERT & CAPTION Increase in the movement of live and fresh seafood. – Jeffry Butt