At Bromwall, we know the freight insurance marketplace inside out – as such, we like to believe that we’re the leading cargo insurance providers in the UK. Here, we take a look at why, as an importer or exporter, you need to be giving it your full attention.
Cargo insurance (also called marine cargo insurance), covers physical damage or loss of goods throughout the transit process, be it land, air or sea. Traders may wish they could avoid cargo insurance; either feeling it’s not needed, overlooking its importance or seeing it as an unnecessary expense. In actual fact it’s a vital element of any trade risk management strategy as without it, there is potential for huge losses.
As any company involved in importing or exporting goods will be aware, there are many costs other than simply the cost of the product itself involved in the process of getting your product from A to B. Internal administration costs, excise duty, taxes, shipping costs, the impact of foreign exchange currency rates, storage and distribution costs – the list is endless, so why skimp on insurance?
Cargo insurance doesn’t just cover the supplier but also the customer, who will have perhaps paid up front, in full or in part for their goods. It gives both parties peace of mind. Freight insurance covers a whole host of scenarios from war, strikes, water damage, loss, fire, piracy and a wide variety of circumstances you may never have thought of. Loss and damage of goods during transhipment is quite a common occurrence and in many cases results in losses of hundreds of thousands of pounds. Without appropriate cover, this can be extremely damaging to the profitability of a business, if not fatal.
Foreign buyers to the UK marketplace enjoy huge benefit from UK cargo insurance as it is often significantly cheaper than foreign insurance rates. This makes buying from the UK a more attractive option. Generally the exporter looks after the insurance and factors this cost into the deal with their supplier but in some cases an ex works deal may be arranged. In this case the customer simply transacts against the price of the product and makes shipping arrangements independently.
For a consultative approach to cargo insurance, Bromwall are the UK’s experts. We don’t simply sell freight insurance; we offer advice and support on all areas of the shipping process.