Things You Should Remember Before Choosing a Marine Insurance Policy
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Posted On :
Feb-06-2012
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Article Word Count :
727
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Business owners should opt for the most comprehensive marine insurance policy to protect their shipment of cargoes. The goods might be vulnerable to risks such as theft, fire or damage due to natural calamities. Choosing policies with lower premiums might do more harm than good.
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Does your business require you to transport goods via the ocean route? If your business engages in the delivery of your goods inland or across the sea, it is high time that you choose the best insurance provider. The moment your goods leave your business premises, they are vulnerable to risks such as theft or bad weather conditions.
In order to protect your goods in transit, you must opt for a comprehensive marine insurance policy. Wondering how to choose the right one! I know its difficult relying on marine insurance companies since all of them promise to offer quality services at affordable rates!
The best way is to do your research before selecting marine insurance packages. Here are some of the things you should keep in mind before opting for one.
Prices can be Deceptive!
Are you opting for some policy that appears too mouth watering! Remember that prices can be deceptive too. A company that tempts you with lower premiums might cover only the actual cost of your goods lost or stolen in transit.
Such policies do not cover depreciation costs, and you end up getting lesser an amount than you have expected!
What about an Expensive Policy?
Had you opted for a policy that is a bit expensive, you would have got the exact amount that you were expecting. Such policies are wiser to choose since you will be covered for replacing the goods lost or damaged during transit.
Also choose a policy that covers natural calamities that might result in the loss or damage during the shipment of your goods. Avoid choosing non-filed policies as those include only the losses specified by the company. It is better to invest in something good than suffer hefty financial loss in the future.
Read the Agreement Carefully
I know it is tiring to read pages of an insurance agreement, but you should do it before a catastrophe hits your cargo! The details of the agreement will inform you of the following:
- The amount of premium you have to pay.
- What privileges you would enjoy.
- Factors that will make the policy invalid.
- Losses that won’t be covered in the policy.
Therefore, it is imperative to read up the agreement before choosing one. For example, if your goods are not properly packed or your shipment has hazardous items such as noxious chemicals and explosive items, then you would not be covered.
Even perishable food products and timber won’t be covered in the policy. This is the reason you should read the contract carefully to avoid any disagreements later.
Avoid Hiding Information
Do not conceal relevant information on the application form. The information you are concealing might not be mandatory, but withholding such information might affect your policy adversely.
If you are caught concealing pertinent information, the policy might turn null and void. Therefore, always furnish complete information and valid documents before applying for a policy.
Marine and Boat Insurance are Different!
Do you know that there is a difference between marine and boat insurance? When you are applying for boat insurance, you get covered for the vessel as well as the passengers. On the other hand, marine insurance not only protects your water borne vessel, but also the goods transported via land.
There are two different things such as ‘wet marine’ and ‘dry marine’. The former implies goods moved by means of a ship, and the latter means land transported goods.
Breaking the Warranty Might Cost You!
When you have applied for a policy, ensure that you don’t break the warranty. If you do it, your contract will not only become invalid, but you will end up paying damages.
As far as marine insurance is concerned, ‘seaworthiness’ of the yacht is the common warranty that is implied. If it is breached, you won’t be able to file a claim as the policy will become invalid.
Therefore, before applying, be informed of the warranties that are included in the policy. And make sure you don’t violate them!
Therefore, choose a policy that suits your business needs.
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Article Source :
http://www.articleseen.com/Article_Things You Should Remember Before Choosing a Marine Insurance Policy_144509.aspx
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Author Resource :
Harmony general is a general insurance company based in Barbados. We provide customized insurance policies to our clients. Harmony General benefits you in a number of ways, like Marine Insurance,Commercial Property Insurance,among which, our articles over several directories provide you with insurance information you need.
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Keywords :
marine insurance, insurance policies,
Category :
Finance
:
Insurance
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