‘Discuss contracts with your insurer in advance’

Policy should include loss or damage and general average ALAN PEAT ALTHOUGH PROJECT cargo tends to be of a robust nature – like earthmoving equipment and building materials and machinery for mining plants, power stations and construction sites – don’t be misled into thinking it is not susceptible to loss or damage, warned Susan Bester, marine marketing manager of Prestmarine. A topical tale of the moment illustrated the dangers of that misconception, she added. “Where would a situation such as the MSC Napoli leave cargo owners with project cargo on board?” she asked. “You would be called upon for security against which the assessed general average (GA) and salvage contributions can be enforced, failing which your cargo will not be released. “The consequential delays mean deadlines are missed and may result in huge fines, penalties and loss of profits.” The answer is a marine cargo policy with the risk of loss or damage to the cargo, as well as GA, insured. “If specialised parts are lost or damaged, it could bring an entire project to a halt,” Bester told FTW. They would then have to be replaced by air freight at additional costs to the cargo owner. “These costs should also be insured against.” Extended cover against consequential losses – such as fines, penalties and loss of profits – can also be taken into account, as well as engineering risks such as erection and testing. “It is of the utmost importance that full details of project cargocontracts entered into are discussed with an insurance broker well in advance to ensure that all these aspects are covered,” said Bester. “Factors that have a huge influence on the insurance are the terms of sale, packing, stowage and any destinations that might be in less accessible places.” And only use operators specialising in moving project cargo, Bester added – talking from Prestmarine’s extensive experience in handling the insurance of projects for plant, construction, telecommunication and hotel sectors in all parts of Africa. “Look for operators with specialist knowledge and expertise is our advice,” she said.