The export and import business is unique because for one thing there’s a wide variety for methods of transport available with all manner of goods coming and going to & from all corners of the globe; which makes assessing a shipment’s risk profile a more important task than most other types of goods.
You have to know what you’re doing - RGIB’ is recognised as Australia’s leading insurance broker for Importers and Exporters; because besides arranging insurance packages for buildings and warehouses, including third party and public liability, RGIB’s specialist cargo & transit insurance division ‘Cargosafe’ offers unbeatable prices and cover for all types of freight insurance.
What’s Important for Importers
Importers need to ensure that the goods they are importing are insured against loss and/or damage during transit; and not just to the wharf or airport but, all the way through to the place of destination. Often referred to as ‘warehouse to warehouse’
Importers shouldn’t rely on the exporter at the other end to have arranged transit insurance on their behalf because for one thing, they may not have arranged it correctly – in fact they may have not forwarded the premium on to the insurer at all, effectively voiding the insurance cover.
Unfortunately, this is not an uncommon occurrence – try making a claim on an uncooperative insurer on the other side of the world; who doesn’t speak the language and where consumer protection laws are not as strongly as enforced as they are here - you could loose the entire value of the shipment.
In most cases, importers are better off importing goods on a cost and freight C&F’ –or- free on board FOB’ basis than other methods because that way an importer can rest assured they are covered.
Don’t forget about ‘Product Recall Insurance’: click here for a brief look
What’s Important for Exporters
If goods arrive at the destination damaged and/or destroyed there is a real risk that the importer may not be obliged to pay for the goods; despite any terms of a letter of credit or some other type of credit guarantee – or even worse, they might have a claim against you as exporter of the goods which could include consequential loss.
When an exporter sells goods on cost, insurance and freight ‘CIF’ they become responsible for arranging the insurance for the transit of the goods. Most exporters sell their products on this basis because it is generally a more convenient method to do so.
The insurance policy will usually be issued in the name of the exporter, who assigns the policy to the buyer/importer by endorsing the policy over. Therefore, if loss or damage to the goods were to occur during transit, the buyer/importer is able to claim under the policy in their own name – much easier for the exporter but, can be a bit more expensive.
Getting it Right – Don’t risk doing it yourself, or letting a freight forwarder organise transit insurance for you, because they’re not licensed to and they don’t have the legal or technical qualifications to advise you on how best to arrange your transit and cargo insurance.
RGIB’ however, is staffed by professional insurance brokers experienced in arranging insurance for the import and export industry – why not contact us now to discuss your insurance needs; more often than not you’ll save money and get a better insurance cover, we make Underwriters work hard for your money.
Our aim is to help you maintain that competitive edge, so please call us on 04-4997925 or submit the brief enquiry form and we will respond to your enquiry immediately.