It is the goods and merchandise in transit where the main part of the transit is by ship.

Yes, as long as the countries involved can legally trade with the United States.

It means they have insurance however, you and your cargo do not.  The transportation carrier or freight forwarder will have, or should have, a liability policy which protects them for loss or damage to your cargo through their negligence only and then for a released value which bears no relation to the actual cargo value.  It’s imperative that you have cargo insurance on your goods.

Yes. An annual open cargo policy automatically insures your shipments on set
terms, conditions and rate without the need to contact your insurance broker or
company each time. This method stops the “I forgot to insure the cargo” panics.
Speak with Wyvern International to set up your open policy.

Yes.  Quite a few freight forwarders have a cargo insurance policy in their name where they can insure their client’s cargo.  However, the terms and conditions are usually very limited, general in nature and not at all specific to your needs – the pricing is usually quite high too.  A freight forwarder is not usually a seasoned insurance professional, their primary function is arranging movement of goods and merchandise, not insurance.   It is well within your interests to consider your own open cargo insurance policy.

Because the insurance broker represents you in all negotiations and transactions with the insurers.  By dealing directly with an insurance company you only receive their point of view and the products they offer, along with the price they stipulate.  Isn’t it a good idea to have an experienced and knowledgeable professional in your corner to advise you on the correct terms, conditions and a competitive price and to find a market that understands and covers your risk?  Remember, it does not cost you anything to do business with an insurance broker. The cost is borne by the insurance company. It’s also comforting to know that your broker will be an excellent resource and partner when a claim comes along.

Yes, it is strongly suggested you do. When you sell on C.& F. terms you retain title to the goods (and therefore ownership) until the point in the transit chain where title transfers over to your buyer. Seeing as losses can occur before your title (ownership) transfers it is not at all wise to permit your goods to go uninsured. Also, if for some reason the title does not transfer, as it was supposed to do, to your buyer and the ownership of the goods remains with you, it is very comforting to know that you have your own cargo insurance that automatically insures the risk and protects you should loss or damage occur.

Again, it is strongly suggested you do.  An issue with buying on C.I.F. terms is that you have no control, and often no knowledge, of the insurance terms, price and insurance company selected.  How do you know the coverage is broad enough and at a competitive price? How do you know the insurance company is financially sound and of good standing and reputation?  Most of the time you don’t!  Should a claim occur, assuming that it is covered, you are going to have to deal with an overseas insurance company where a language difference can create an enormous communication issue, also seeing as you are not a valued client of that overseas insurance company, getting their full attention and engagement into your claim may well prove a significant challenge.  Our advice is to consider your own cargo insurance open policy to fully protect your interests and which will respond to your needs in the event of a claim.  After we have arranged payment of your covered loss, we will then go against your seller’s insurance to collect the claim from them.  Doesn’t that sound like a good and simple idea….it will save you a lot of headaches and potential sleepless nights!

Almost certainly yes.  We have a wealth of experience in the import/export/distribution/supply chain niche, and there’s not many scenarios we haven’t seen and met before.  We have established relationships with first class insurers who also have a wealth of knowledge and experience in the niche…..and because of our volume of business with them we have the inside track which we can put to use on your behalf.  In any event, it doesn’t cost anything to speak with us and even if we successfully arrange your coverage, it still doesn’t cost you anything to do business with Wyvern International – we are paid by the insurance company for our services rendered on your behalf.

Consider this....Even if your buy/sell contracts, transportation contracts, or financing terms don’t stipulate you need cargo insurance, and many do, you still are exposed to risk and the possibility of financial injury.  Even if you’ve never had a loss this doesn’t necessarily mean you won’t have one in the future……your very next cargo shipment valued at, say, $500,000 can be loaded on a vessel which encounters heavy weather and sinks – can your balance sheet withstand a $500,000 loss?  Even if it can, why risk it? – your stock holders may be glad you bought cargo insurance!  Don’t forget the maritime principle of General Average…..should your cargo be on a vessel that declares a General Average and your cargo is not even damaged, you could be stopped from having access to your cargo because it was being held as collateral for your portion of the General Average costs. Or to have your cargo released you had to post a significant cash sum or bond – that’s why you need a cargo insurance policy because the policy contains a mechanism that takes care of all the General Average issues that you will face, which means your cargo will be released either to your custody and control or that of your customer.  In addition, General Average situations are very common and, on average, it takes 4 years for a General Average situation to be resolved and finalized.  Have we convinced you yet?  There are many of people who have never claimed on their personal automobile policy or homeowners policy either, yet they continue to buy automobile and homeowner's insurance beyond the statutory liability coverage……we think, very wisely.  Your cargo is valuable so why would there be any difference with this thought train on your cargo insurance?

It’s very easy.  All we need is a completed application….there’s one on this website.  Just fill it in and you can submit it to us on-line, or if you prefer you can download it for completion and then fax it to us or email it to us as an attachment.  You can also call us to discuss your cargo insurance needs and we will help you fill in the form.  Once we have all the information we need to quote your risk, we usually are able to quote within one or two business days.

Yes, we’d be happy to do that for you and there’s no obligation.  Just send us a copy of your policy and a description of your business…or just call us to describe what you do….and we will give you the benefit of our experience and our opinion.

It may be, but probably it’s not broad enough and you should consider a policy on “all risks” terms.  Most cargoes should be insured on “all risks” terms which includes many causes of loss that are simply not covered in a limited perils policy.  Examples of causes of loss typically not covered in a limited perils policy are:  theft, pilferage, non-delivery, breakage, leakage, losses caused by heavy weather, lightning, fresh water, sweating, the list goes on. Think what exposures your particular cargo is susceptible to…..if you just ship, say, sand in bulk then a limited perils policy is probably sufficient – it is not particularly theft prone, it can’t break, it can’t get damaged by fresh water as it will dry out and it doesn’t burn if struck by lightning.  On the other hand if you ship consumer electronics….get what we mean? 

Most definitely, yes…..it’s a fact with many imports that the risk starts before you take up the title to the goods.  It is not required to have title to the goods when you take out the cargo insurance, however, you’ll need to demonstrate title should a loss occur and you make a claim on the policy.

Use the main mode of transport, in this case the ocean vessel – the other modes of transport are regarded as connecting conveyances and are automatically included as being in the normal course of transit, provided your cargo insurance has been structured correctly, which of course is another good reason to speak with a cargo insurance specialist.