Cargo insurance arranged with insurers
Cargo insurance covers loss or damage to goods in transit. We arrange cover with insurers and explain what it includes and excludes. Ayer Shipping is not an insurer, and the insurer decides the terms, the price and any claim.
What it is
Cargo insurance is a policy that pays for loss of or damage to goods while they travel. It is separate from the carrier's liability. A carrier's liability is usually limited by the contract and by international rules, and it can be much lower than the value of the goods.
We pass your cargo details to insurers, compare the cover on offer against what you need, and arrange the policy or certificate. We explain the wording in plain language. The insurer issues the cover and handles claims.
When to use it
- The goods are valuable.
- Your Incoterm leaves the risk with you while the cargo is in transit.
- A buyer or a bank requires insurance documents.
- The route is long or has several handovers.
- You want to know what the carrier's liability covers before you decide.
What we handle
- Passing your cargo details to insurers
- Comparing the cover offered against your requirements
- Issuing the insurance documents the buyer or bank asks for
- Explaining what the cover includes and excludes
- Passing claim details to the insurer
- Checking that start and end points of cover match the move
How it runs
- Quote: you send the cargo, value, route and Incoterm. We ask insurers for terms.
- Options: we set out the cover offered, with its limits and exclusions, side by side.
- Decision: you choose the cover. We arrange it with the insurer before the cargo moves.
- Documents: the insurer issues the policy or certificate. We send you what the buyer or bank needs.
- Loss or damage: you tell us at once. We pass the details to the insurer and help you gather the papers.
- Claim: the insurer assesses and decides the claim.
What to send us for a quote
| Detail | Why we ask |
|---|---|
| Cargo description | Insurers price by cargo type and packing. |
| Invoice value | Sets the sum insured. |
| Packing method | Poor packing can affect cover. |
| Route and mode | Risk differs by sea, air and road. |
| Incoterm | Shows who needs the cover and from where. |
| Start and end points of cover | Cover can be port to port or door to door. |
| Terms a buyer or bank requires | They often set the clauses and the sum insured. |
Good to know
- Cover is often written under the Institute Cargo Clauses (A), (B) or (C). Clause (A) is the widest and (C) the narrowest.
- A common sum insured is invoice value plus 10 percent, and some contracts ask for it.
- Under Incoterms 2020, CIF needs minimum cover and CIP needs wider cover. Check which your contract says. See Incoterms 2020.
- Exclusions are normal. Poor packing, delay and inherent defect are often excluded. Read them before you ship.
Questions
Is the carrier not liable for damage?
Often yes, but the limit can be far below the value of your goods. Insurance covers the gap.
Are you the insurer?
No. The insurer issues the cover and decides the claim. We arrange it and help with the papers.