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.