Importing or exporting goods may involve multiple parties, creating a complex situation where determining liability after an accident is difficult. Marine insurance gives businesses a chance to simplify that situation by making it easier to address damage and losses as they occur, and also offers a possible way to avoid costs related to maritime risks.
Australian maritime lawyer Andrew Tulloch mentioned the importance of marine insurers for importing and exporting in an article for Lexology published earlier this year. To illustrate his point, he used a theoretical scenario to show the way an unexpected weather disaster at sea might lead to a company losing $100,000 worth of material in transport. Without insurance, Tulloch argues, sudden losses may completely capsize a business.
"When considering the terms of sale or purchase for imports and exports, think about the best terms to allow control over the insurance risk and cost," he writes, adding in his conclusion that "Marine insurance is an essential element in the success and survival of a business involved with imports or exports."
Whatever items companies are transporting internationally by ship could possibly fall under threat of various storms or other conditions that they cannot foresee. If cargo is stalled or damaged, businesses shouldn't have to shoulder the entire cost if they are not directly responsible. Purchasing insurance also possibly makes dealing with other companies, like freight forwarders, easier if problems occur.
Short trips, long trips and everything in between still have dangers attached to them for vessels loaded with goods. Looking closer at their current approach to marine operations with the help of professional marine insurers will companies transport cargo more efficiently. Commercial operations stability may be easier to maintain with insurance specialists that know about niche markets and their related concerns.