DYK: Marine Cargo Insurance

When shipping cargo via ocean, shippers agree to terms listed in the fine print on the ocean bill of lading outlining two major considerations to the beneficial cargo owner...

1. Limit of Liability
2. General Average

LOL: Limit of Liability

• For Ocean Carriers: $500 per package/shipping unit
• For Air Carriers: $20/kg
• Except in RARE circumstances, Carrier LOL is insufficient

GENERAL AVERAGE: If a vessel sinks, or other incident happens, the shipper may be expected to pay proportionally for the loss of other cargo, and the vessel itself.

Without a Marine Cargo Insurance policy that covers General Average, BCO's must put up cash collateral for their share of the cost before cargo can be released.

The Cargo Owner should understand:

• Carrier Limits of Liability
• Do they have insurance coverage?
• If General Average is declared, are they covered?Can they cover all losses if an incident occurs?
• Can they cover ALL losses if an incident occurs?

For pennies on the dollar, cargo owners can eliminate these risks by securing Marine Cargo Insurance.

Contact your JSJ rep for more info

www.johnsjames.com