1. Trade Risk Guaranty Broker Services LLC
Welcome
Trade Risk Guaranty
Ocean Marine Cargo Insurance: Part I
11/6/2018
Trade Risk Guaranty Broker Services LLC

2. Trade Risk Guaranty Broker Services LLC
Today we will cover
The basics…
History of Ocean Marine Cargo Insurance
Defining Ocean Marine Cargo Insurance
Types of Coverage: All Risk – A Clauses, Named Perils – B/C Clauses
Types of Policies: Open, Flat Annual
How Cargo Insurance is Purchased: CIF, Shipment by Shipment, Annual, Self Insurance
Carrier’s Liability
11/6/2018
Trade Risk Guaranty Broker Services LLC

3. History, because it’s his story…
Ocean Marine Cargo Insurance began in 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
11/6/2018
Trade Risk Guaranty Broker Services LLC

4. What exactly is Cargo Insurance?
Definition:
Covers the loss or damage of cargo, between the points of origin and final destination
Type of property insurance, basically
11/6/2018
Trade Risk Guaranty Broker Services LLC

5. Types of Coverage – All Risk
All Risk insurance is an Institute Cargo Clause A
Most comprehensive coverage available
Promises to cover all losses except those indicated in the policy
International Origins
Not included: Inherent Vice, Dishonest/Negligent Practices, Certain commodities, WSRCC, and Other Exclusions
11/6/2018
Trade Risk Guaranty Broker Services LLC

6. Types of Coverage – Named Perils
Refers to Institute Cargo Clauses B & C
Restrictive types of insurance
Coverage includes: Fire, Sinking, Stranding, Heavy Weather, Collision
11/6/2018
Trade Risk Guaranty Broker Services LLC

7. Types of Policies – Open Policy
Annual Coverage based on price of goods actually shipped
Can’t be charged extra
Based on a predetermined rate
X cents per $100 of shipped goods
Rate decreases as value of goods increases
11/6/2018
Trade Risk Guaranty Broker Services LLC

8. Types of Policies – Flat Annual
Contains a fixed premium that remains in place for an entire year
Typically for low-volume importers
Rate based on estimation
Can be Audited
11/6/2018
Trade Risk Guaranty Broker Services LLC

9. How Cargo Insurance is Purchased – CIF
CIF – Cost, Insurance, and Freight:
Ownership of goods starts at foreign port
Foreign Insurance
Seller only required to provide minimum coverage
Loss/Claims processes issues
Generally acquired from inferior foreign agencies
11/6/2018
Trade Risk Guaranty Broker Services LLC

10. How Cargo Insurance is Purchased – Shipment by Shipment
Obtained for one shipment at a time
Optimal for companies with few shipments
Typically provided by Freight Forwarders via their open policy
Insurance through Freight Forwarder can be inferior
FF often marks up cost for this type of coverage
11/6/2018
Trade Risk Guaranty Broker Services LLC

11. How Cargo Insurance is Purchased – Annual
Remains on file for an entire year, easier for importers to manage
Costs only occur once a year
Lower premiums and less paperwork
More comprehensive coverage, typically
All TRG policies are annual
11/6/2018
Trade Risk Guaranty Broker Services LLC

12. 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
11/6/2018
Trade Risk Guaranty Broker Services LLC

13. What is a Carrier’s Liability?
Carriers are liable for…
Ocean Carrier - $500 per package or freight unit
International Air Carrier - $9.07 per pound or $20 per kilo
Domestic Air Carrier - $0.50 per pound
11/6/2018
Trade Risk Guaranty Broker Services LLC

14. 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
11/6/2018
Trade Risk Guaranty Broker Services LLC

15. Trade Risk Guaranty Broker Services LLC
Meet the team
Our creative minds
Tyler Zaichkin
Nick Esposito
Johnny Certo
National Sales & Marketing Manager
Marketing Specialist
Marketing Specialist
11/6/2018
Trade Risk Guaranty Broker Services LLC

16. Trade Risk Guaranty Broker Services LLC
Send us a message
Our contact information
On the web
You can contact us at
or Tyler directly at
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
11/6/2018
Trade Risk Guaranty Broker Services LLC