It is necessary to mitigate all possible issues that would befall export products in the risky international trade scene. Export insurance does not only offer an international trader peace of mind but also ensures the thriving of business internationally.
Below we highlight relevant export insurance services ideal for an exporter.
Marine Insurance
The transportation company that oversees international trade through the sea voyage mostly carries out the insurance cover purchase through an insurance broker. This insurance cover is meant to cover losses up to a certain amount of all of the cargo, personnel, and other assets on the vessel if the ship sinks. Once a marine insurance policyholder files a successful claim, damage compensation is typically offered for about three-quarters of the damaged/lost cargo value.
Insurance Exclusions
This insurance does not cover:
- Wear and tear of the cargo
- Delay of the shipment
- Ullage (The extent at which shipping containers remain unfilled and as a result damaged is caused)
- Conscious misconduct of the assured
Professional Indemnity Insurance
This type of insurance covers the cost of reimbursing clients for cargo damage realized from negligent services or advice provided by a business. This cover is generally chosen by professionals who offer consultancy services to export businesses. It mostly covers inaccurate information that was rendered, negligence, violation of good faith, and misinterpretation.
Insurance Exclusions
This insurance does not cover:
- Liquidated damages
- Criminal Fines
- Claims that arise from situations that the insured was aware of from the beginning)
- Fraud
Product Liability
This insurance cover is ideal for traders who have their physical products designed and manufactured by a third party. It protects sellers if their products cause harm to people. The cover is obtained from most insurers who provide it in addition to a standard Combined Liability policy.
Insurance Exclusions
This insurance does not cover:
- Criminal Fines
- Liquidated damages
- Poor quality or mistakes
- Claims raised outside the territorial limits (Territorial/Geographical Limits – The countries where certain activities are covered.)
An international business owner should, however, conduct extensive research in due diligence by vividly assessing probable risks that would affect the shipment, and conclusively conclude on the most appropriate insurance cover.
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