Freight in­sur­ance ex­plained in new short course

Exporter - - INSURANCE/RISK MANAGEMENT -

The word in­sur­ance can be scary; the thought of un­cer­tainty and risk verses a cost to ob­tain freight in­sur­ance. Is it all worth it?

A spe­cial short course by IVS (In­de­pen­dent Ver­i­fi­ca­tion Ser­vices) is de­signed to em­power you with the knowl­edge of how to buy freight in­sur­ance, why it is very nec­es­sary, and how to sub­mit a claim. You will gain knowl­edge of what in­sur­ance to buy and how to buy it.

In­sur­ance has been around since the 14th century, so in­sur­ance cor­po­ra­tions have had many years of prac­tice to de­fine their in­sur­ance poli­cies. The bot­tom line is that in­sur­ance poli­cies do of­fer good solid pro­tec­tion to im­porters and ex­porters, pro­vid­ing the el­e­ments of the pol­icy are ad­hered to.

In­sur­ance, like law, is not emo­tional. It’s prag­matic and there is no sail­ing past the pol­icy word­ing when mak­ing a claim. In­ter­pre­ta­tion in stan­dard word­ing is to be clear and con­cise. When freight for­warders quote freight move­ment costs, these move­ments should have the re­quire­ments of the goods or freight char­ac­ter­is­tics taken into ac­count. For ex­am­ple, you would be un­wise to move ice­cream world­wide, un­less it was in a re­frig­er­ated (frozen) container. In­sur­ance is the same. A ma­jor­ity of claims are de­clined due to poor or in­suf­fi­cient pack­ag­ing and where the mode of trans­port it­self was detri­men­tal to the goods. This is called ‘In­her­ent Vice’ – a term cov­ered in the IVS short course. In other words, the goods would have sus­tained dam­age in any event and there­fore should not have been moved us­ing this trans­port type or pack­ag­ing.

Re­mem­ber, car­ri­ers, ship­ping lines and air­lines have no le­gal duty to set­tle any claims for loss or dam­age.

This short course is well worth in­vest­ing in, says IVS, de­scrib­ing it as “not ex­pen­sive, fast mov­ing and well de­tailed”.

Lisa Arun­dell, op­er­a­tions man­ager from freight lo­gis­tics firm Red­fort Group, has at­tended the one-day IVS course and had this to say: “As a freight for­warder I found this to be re­ally use­ful – with lots of in­for­ma­tion that I can pass on to my col­leagues and our clients. Glenn’s knowl­edge and pre­sen­ta­tion skills were spot on and he did a great job keep­ing us in­ter­ested, on what could have been a long day, with rel­e­vant sto­ries!”

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