Sending cargo by ship is a smart choice when your cargo needs to cross the oceans to reach your customers. Marine shipping is one of the most effective shipping methods available. While reviewing the cargo insurance quotes before selecting one, you likely believed that you have provided for every contingency. But what if something happens to your cargo due to an act of war? It is time to consider war risk insurance.
War risk insurance came into existence in 1914 when the United States Congress realized there was a need for it. The Treasury Department created the Bureau of War Risk Insurance to create and manage claims. This was updated in 1917 to create a life insurance program for merchant marines as well.
War risk did not stop with the end of the First or Second World War. As piracy issues continue to worsen in some geographic areas, war risk insurance for your cargo is even more critical than ever. It is important that you factor in the risk of war when you are getting your cargo insurance quotes.
If your cargo is traveling through waters considered to be high risk, war risk policies are critical. When your standard policy ends, the cargo war risk policy kicks in. In most cargo war risk insurance policies, most perils defined as “war” are covered. They include
hull breeches, ships being taken hostage by terrorists or pirates, and other issues.
War risk cargo insurance policies can remain in effect for brief periods. They can be canceled as quickly as with 48 hours notice. This allows for coverage in high risk areas with the flexibility to cancel once this risk is less.
War risk cargo insurance policies are regulated. It is necessary to verify the regulations and make sure that your cargo insurance quotes are meeting all of the regulations required.
If you are shipping goods through international waters, having a contingency insurance plan that includes cargo war risk insurance is a smart plan. Use CargoInsurance.com and find the cargo insurance policy that is the best fit for you!
