Why do Importers and Exporters need Cargo Insurance?
Exporters Most regular shippers, ‘exporters/suppliers’ will have their own Annual or Open cargo insurance cover which, provides insurance for all the exporter’s shipments of goods that the exporter ships during the annual period of cover, or lesser period of cover if required. At the commencement of the Annual or Open cover, the exporter/supplier will usually estimate the value of cargo, and the number of shipments to occur within the period of cover. At the end of the period of cover, a formula is applied to the total value of cargo shipped, and by the number of shipments made in combination with other salient factors to determine an ultimate premium payable. This type of insurance adjustment system allows the exporter a high degree of flexibility within their business and in many circumstances the exporter will have the ability to include within their cover, an extension of cover for the customer/buyer of the shipment. Indeed, many exporters and trading companies sell ‘Cargo Insuranc
