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Lloyd’s Coffee House was the first marine insurance market, established in the late 1680s, eventually leading to the establishment of Lloyd’s of London.

Marine insurance has evolved since then to cover a wide range of risks for today’s shipping requirements including ship’s hull, cargo and marine liability.

Political unrest, unpredictable weather conditions and the marine insurance market can all influence insurance premiums.

The current unrest in the Middle East, the recent attacks on shipping and the uncertainty of the dispute between the US and Iran are already starting to have an adverse impact on insurance premiums.

Extreme weather caused by global warming has resulted in containers from ships being washed overboard due to strong winds.

These challenges have meant that some providers in the marine insurance sector are walking away from the unprofitable areas of marine insurance. For several years the market has had a wealth of providers in the sector, however, this may be changing as margins are squeezed and providers pull out of the market or place additional conditions on the business.
 

Marine insurance cover

Container-vessel-at-seaSourcing the best marine insurance cover for your needs in today’s difficult and complex market will require expert knowledge and an understanding of the latest challenges facing global shipping and the changes within the insurance sector to ensure you understand any restrictions or exclusions within the policy.

This is where an insurance broker can provide the knowledge to source the best policy for your needs. Whether you are a shipowner, cargo owner or agent such as a haulier or freight forwarder, CLA (Risk Solutions) can provide the expertise to guide you through the selection of the best policy to meet your needs at the most economical price.
 

Freight forwarders insurance

This cover is designed specifically for freight forwarders. It is not cargo insurance; it provides cover for any errors and omissions while carrying out responsibilities to clients. The cover includes:
  • legal costs for defending claims
  • clerical errors and omissions
  • containers and trailers on hire
  • temporary storage costs following an insured incident.
You can also insure the goods, if required, under an open cover facility. Alternatively, we can arrange insurance cover for any of your clients’ goods directly.

We will work with you to understand your terms and conditions, the cover would be limited to your maximum amount under those terms.

To discuss any of your marine insurance requirements, call 0121 321 4600.
Insurance is often seen as a necessary evil by many, but when something goes wrong it can be worth its weight in gold. Prudent freight forwarders already appreciate the value of purchasing liability insurance for their business, fully aware of the financial implications that they could potentially face if they become liable for another party’s loss.

Having general liability insurance might not provide you with the absolute guarantee that you are protected for the specific requirements needed for marine freight. You may not realise this until you need to make a claim. So what can you do?

The team at CLA Risk Solutions have put together a few tips to ensure that your liability cover provides you with the correct protection, when you need it most:
  • Ensure that you purchase marine liability insurance because general non-marine liability insurance does not provide cover for international forwarders – remember to check the fine print.
  • Make sure that you have full liability protection to cover all your forwarding operations.
  • Check that your insurance covers you for Errors & Omissions and Legal Liability. As a freight operator you have a contractual liability for a loss regardless of who is responsible.
  • If you trade internationally ensure that you have adequate limits of liability; remember laws differ across the world.
  • Defending an action brought against you can be costly even if it’s not your fault; therefore make sure that your policy covers ‘Defence’.
  • Make sure that General Average and Salvage Charges are included as claims can fall back onto the forwarder.
  • Utilise your own ‘Conditions of Trade’ to limit your company’s liability in your day-to-day business where no standard limitations of liability are employed. Always make reference to them on your literature and website.
  • Never accept liability without first speaking to your insurer.
When it comes to reducing potential losses, we suggest you consider:
  • Freight_forwarders_insuranceNever agree to release containers or cargo without the production of the original Bill of Lading, no matter how well you know your customer.
  • Always keep the original Bills of Lading in a secure place and ideally separate some of them so that if there is a fire or flood you will not lose all of the originals.
  • Reduce the risk of a customer seeking compensation from you for loss or damage to their cargo, by encouraging them to purchase cargo insurance.
At CLA Risk Solutions we are on hand to offer advice and ensure that you obtain the most relevant cover.

If you already have Liability Insurance, we would be happy to provide you with a FREE review with no obligation to purchase, simply get in touch.