Do you EXPORT or IMPORT?
If you do need marine insurance coverage that you can rely upon. We offer as agents marine insurance coverage for both export and import shipment worldwide. As agents for a major underwriter we provide very competitive rates with our without a deductible.
For a non strings attached quotation please call, write, and fax or E-mail us with your requirements.
OCEAN CARGO INSURANCE VALUATION
The value of many shipments depends upon fluctuations in currency exchange, handling charges, manufacturing costs, freight charges and other expenses. It is therefore crucial to establish a basis for valuation prior to issuance of an open ocean cargo insurance policy.
Once the valuation basis is established, all shipment values declared by the assured should coincide with the valuation clause. The policy prohibits declaring a value on one basis for effecting insurance and on another basis for settlement of a claim.
Other manners for cargo valuation available to assureds are:
- Low valuations
- High valuations: excess of 10%
- Market value
- Selling price
- Foreign currency based valuation
- Valuations for seasonal products
Low valuations are ideal for an assured shipping merchandise to a branch where the cost of manufacture plus ocean freight represent the extent of the insurable interest. The underwriter should allow for premium credits due to the lower valuation clause.
Higher valuation can be used if the assured expects to incur claim-related expenses beyond the 10% advance.
Market value is used for commodities that have values which fluctuate widely within a short period of time. The valuation clause can address these fluctuations by valuing the product at the highest published price quoted by a specific Commodity Exchange during the period of risk.
Imported merchandise can be insured at the importer's resale price provided the value was agreed prior to shipment.
Import shipments and cross voyage shipments may have invoices in foreign currencies. Some reference to the conversion of these foreign currencies should be contained in the valuation clause.
Exporters and Impor of seasonal products should consider advances in excesses of the normal 10%. Based on the 10%, a severe claim can make it extremely difficult for a seasonal shipper to remain in business.
The valuation clause of an ocean cargo policy can be worded to accommodate almost any shipment. It may prove valuable to occasionally review your valuation clause to determine if it remains suitable for your business.