by FCIS Team | This article was posted on 04 27, 2021 | Uncategorized
If your company ships goods by sea, every day you go without cargo insurance is a gamble.
Recently, a container ship called the Ever Given was grounded in the Suez Canal, leading to a six-day blockage. Canal authorities would not release the ship until a heavy compensation was paid for the cost of refloating the ship and the revenue loss that occurred during the blockage. In response, the vessel’s owner declared “general average,” a legal principle of maritime law that requires that all cargo owners on a vessel contribute to the costs of any loss, even if their cargo is not damaged.
For cargo owners with insurance, their policy would likely cover some or all of their general average contribution, while those without insurance would have to pay out of pocket. Not only that, insured shippers were even able to have their cargo released more quickly, allowing them to get back to business.
Cargo insurance protects businesses from unforeseen losses on the high seas, or the low banks of a canal. Don’t take any chances — get the coverage you need for your cargo today.
Contact us at (805) 523-8600 to learn more!