Marine policy usually terminates when cargo enters storage

THE HEAVY rains in Gauteng over
the past two months have wreaked
havoc on several warehouses,
with Eskom’s load shedding an
additional security risk.
“A number of warehouses
flooded when the heavy rain
storms swept through this part
of the country,” said Jean Roos of
short-term insurance intermediary
Prestmarine International. “Load
shedding has become part of
our daily routine, which has
resulted in additional security
risks especially for perishable
warehouses.”
Storage facilities form an
integral part of supply chain
operations, and it is the
responsibility of the freight
forwarder to be aware of the
threats and vulnerabilities when
packing, distributing and storing
their clients’ cargo, adds Susan
Bester.
“Unless alternative
arrangements have been made
with your insurance broker, a
marine and transit policy usually
terminates when cargo enters such
storage facilities, leaving the goods
uninsured,” says Bester.
“Storage cover on cargo can be
arranged as an extension to the
marine and transit policies or on
a month-to-month basis pending
allocation and distribution to final
destinations,” says Bester, who
adds that fluctuations in the rate
of exchange could have an adverse
effect on the value of the cargo in
storage
“Commercial and warehouse
liability insurance is essential and
it is important to review your
policy on an annual basis to make
sure that your business needs are
catered for,” concludes Roos.