Worldwide Marine Transit
Do you import or export goods?
Just because you seem to only trade within the U.K. does not mean that you do not import parts or material to produce your final product.
Some customers may be trading under terms where they are not responsible for arranging the insurance. The other party to the contract may arrange the insurance and you may not realise that it is possible for you to negotiate a change in the terms of sale. This would allow you to be responsible for arranging the insurance.
This is not as onerous as it may seem and often produces worthwhile benefits:
- It is often cheaper for the insurance to be arranged in the U.K
- It will provide greater control over the insurance, especially if arranged via a broker who is familiar with your whole portfolio.
- The customer’s precise needs can be met rather than relying upon an insurance policy arranged abroad by someone unfamiliar with your exact requirements.
- By changing the terms of sale, you have more control over the costs of supplying or buying goods. This can provide a competitive edge as well as offering a full “supply” service (for exporters).
- If you use a freight forwarder to arrange the marine insurance, it may well be cheaper to establish your own cover specifically tailored to suit yourself
- Where a customer uses a freight forwarder’s insurance they have to rely on the good performance of the freight forwarder’s other customers. Poor claims experience by one customer would increase the premiums charged. The freight forwarder’s insurance policy will be a general one and not specifically tailored to your needs.
Insurance Clauses and Sales Contract Terms with advice on how they differ