Trade Risk Guaranty Broker Services LLC Welcome Trade Risk Guaranty Ocean Marine Cargo Insurance: Part I 11/7/2018 Trade Risk Guaranty Broker Services LLC

Marine Insurance Basics Topics Covered Today Marine Insurance Basics History Definition Types of Coverage Ways Policies are Purchased Warranties Common Warranties Enhancement Clauses Standard Enhancements November 7, 2018 Trade Risk Guaranty Broker Services LLC

The History of Cargo Insurance Dates Back To The 14th century Dates back to the early Greek and Roman cultures Developed in Italy and northern Europe First Marine Insurance Market formed in the late 1680’s in England Lloyd’s of London 11/7/2018 Trade Risk Guaranty Broker Services LLC

Ocean Marine Cargo Insurance Definition An arrangement by which a company provides a guarantee of compensation (indemnity) for the specified loss or damage to the insured interest during the insured transit and against the insuring conditions in return for payment of premium Layman’s Terms: If cargo is lost or damaged during transit, it will be paid for. November 7, 2018 Trade Risk Guaranty Broker Services LLC

Trade Risk Guaranty Broker Services LLC Types of Coverage All Risk Institute Cargo Clause A Most comprehensive Covers all, except excluded losses Exclusions written into policy Named Perils Institute Cargo Clause B & C Restrictive types of coverage Coverage includes sinking, fire, stranding, heavy weather, and collision November 7, 2018 Trade Risk Guaranty Broker Services LLC

Trade Risk Guaranty Broker Services LLC Types of Policies Open Policy Rated Based on actual value of goods shipped Rate decreases as value of goods increases Flat Annual Typically for low-volume importers Rate based on an estimate of goods imported November 7, 2018 Trade Risk Guaranty Broker Services LLC

How Cargo Insurance is Purchased CIF: Cost, Insurance, and Freight Cost of insurance is figured into purchasing price Ownership of goods starts at the foreign port Shipment by Shipment Optimal for companies with few shipments Provided by Freight Forwarders Annual Costs only occur once a year Lower premiums, better coverage, less paperwork Self-Insurance Internal fund to cover losses November 7, 2018 Trade Risk Guaranty Broker Services LLC

How Cargo Insurance is Purchased CIF – Cost, Insurance, and Freight Ownership of goods starts at foreign port Seller only required to provide minimum coverage Figured into selling price Generally acquired from inferior foreign agencies Loss/Claims processes issues 11/7/2018 Trade Risk Guaranty Broker Services LLC

How Cargo Insurance is Purchased Obtained for one shipment at a time Optimal for companies with few shipments Typically provided by Freight Forwarders via their open policy FF often marks up cost for this type of coverage Insurance through Freight Forwarder can be inferior Always know your coverage, don’t wait until it’s too late to find out you’re not covered for a loss! 11/7/2018 Trade Risk Guaranty Broker Services LLC

How Cargo Insurance is Purchased Annual Coverage Costs only occur once a year Lower premiums and less paperwork More comprehensive coverage, typically All TRG policies are annual 11/7/2018 Trade Risk Guaranty Broker Services LLC

How Cargo Insurance is Purchased – Self-Insurance Internal insurance fund to cover losses/damages Generally this means they have no insurance and are willing to “eat” any losses acquired How would the loss of an entire shipment of goods affect your business? 11/7/2018 Trade Risk Guaranty Broker Services LLC

What is a Carrier’s Liability? Carriers are liable for… Ocean Carrier - $500 per package or freight unit An entire shipping container can be considered a package International Air Carrier - $9.07 per pound or $20 per kilo Domestic Air Carrier - $0.50 per pound 11/7/2018 Trade Risk Guaranty Broker Services LLC

Trade Risk Guaranty Broker Services LLC THE END Thanks for watching! Now you know a bit more about the specifics of Ocean Marine Cargo Insurance Take this knowledge and apply it to your own importing practices Feel free to reach out and ask any lingering questions 11/7/2018 Trade Risk Guaranty Broker Services LLC

Trade Risk Guaranty Broker Services LLC Meet the team Our creative minds Nick Esposito Meredith Lambert Marketing Executive Marketing Executive November 7, 2018 Trade Risk Guaranty Broker Services LLC

Trade Risk Guaranty Broker Services LLC Send us a message Our contact information E-mail On the web You can contact us at marketing@traderiskguaranty.com or Nick & Meredith directly at nick.esposito@traderiskguaranty.com meredith.lambert@traderiskguaranty.com twitter.com/trg_bond facebook.com/trg_bond linkedin.com/trg_bond traderiskguaranty.com Our address 211 East Main Street Suite C Bozeman, MT 59715 11/7/2018 Trade Risk Guaranty Broker Services LLC