‘Insurance cover must involve cargo owners’

Decisions on insurance
cover should not be taken
lightly.
“Cargo owners who rely on
their logistic operators to insure
their goods could face serious
repercussions if the scope of
their policies are not in line with
the risks involved,” says Susan
Duvenage, marine marketing
manager for short term insurance
operator Prestmarine International.
She believes the insurance
broker should be actively involved
with the logistics operator in
structuring the correct cover for
individual clients. “There should
be explicit agreement that the
policy is a contract between the
cargo owner and the insurer,
merely facilitated by the logistics
operator,” says Duvenage.
“The type of cover, duration,
and who is responsible for costs
such as risk management and
excesses should be agreed prior to
attachment of the risk.”
According to Duvenage, agents
often find themselves under great
pressure to enter into contracts
which may contravene their
standard trading conditions,
leaving them liable for financial
losses far exceeding the limits of
their trading conditions.
“It is not only loss or damages
to cargo that are at stake but also
consequential delays following
these events such as fines,
penalties and loss of profits if
deadlines are not met.”
She advises agents to ensure
that they have consulted with their
legal liability insurers if they enter
into contracts that contravene their
trading conditions.
“In the current economic
enviroment criminals are ruthless.
Armed robberies at warehouses
as well as hijackings are reported
daily, with the value of stolen
cargo often exceeding millions.
“In addition, continuous labour
disputes and strikes have resulted
in malicious damage and delays
causing serious trade disruption to
the end receiver.”
Perishable cargo and goods
ordered for a specific event
like the current World Cup are
especially at risk, says Duvenage.
“For these, delay and loss of
market is not automatically
covered under a marine policy –
additional cover must be arranged
for such risks.”
Prestmarine is a short term
insurance intermediary with
facilities in place to cover
marine commercial, personal and
specialised liability lines.