Regarded as the oldest form of insurance, Marine Insurance is a policy that provides cover for damages to ships and cargo carried in them. It helps mitigate risks in the event of piracy or accidents caused by natural disasters. In view of the financial burden, it manages and represents a safe haven for shipowners, transporters, and shipping corporations.
Two Reasons Why Businesses Need Marine Insurance
- High-Risk Exposure
When it comes to trade, a business needs to rely on transportation. Transportation, especially on the sea, is an extremely risky process that faces exposure to various named and unnamed perils. Therefore, businesses need to take steps cautiously from packing the goods for transporting and choosing reliable logistics methods for smooth transits. However, despite all safety measures taken, accidents could still happen, which might result in a loss or damage to shipment or cargo. To manage these transport risks, it is important to resort to marine insurance.
- The Possibility of Exorbitant Losses from Transits
Business transport shipments in bulk. As carriers have limited liability, loss or damage to high-value shipments can put a business under severe financial crisis. In this case, Marine Insurance provides comprehensive coverage by protecting the shipment from various perils such as theft and piracy, fire, explosion, natural disasters, etc.
XYZ Ltd is an e-commerce company with its headquarters in Lagos. They have been using ships to export African textiles abroad. Each shipment is sent by the company in phases. A shipment transported by the ship worth NGN 15,000,000 was lost in August because of cyclones. If XYZ Ltd had obtained Marine Insurance, they would not have suffered such a significant loss in this scenario because Cornerstone Insurance would have reimbursed them.
Marine Insurance is a crucial resource for enterprises, whether they engage in domestic or international trade. It is for controlling all trade hazards, beginning at the point of cargo loading and continuing until the shipment reaches its destination.
Types of Marine Insurance Offered by Cornerstone
At Cornerstone Insurance Plc, we offer two main Marine Insurance plans. They are:
This covers the risk arising from or connected with marine navigation. That is in the event the sea represents the cause of damage or it may arise from navigational difficulties encountered. Our Marine Hull Insurance Policy covers the sea disasters such as drowning, grounding, stranding and collision due to bad weather situations at sea. The policy also covers perils occurring at sea whether during the voyage or not, like fire, explosion, theft, piracy, capture and confiscation. (To get a quote; please send your request to email@example.com)
This policy covers the loss or damage of cargo (consignment) during the process of transportation from the port of origin to its port of destination. Ordinarily, one should consider marine insurance to safeguard goods being shipped against damage. However, in Nigeria, marine insurance is compulsory, if you are importing any consignment from overseas as it is a prerequisite to obtain the FORM – M needed for clearance of goods at a Nigerian port.
Who Needs Marine Insurance in Nigeria?
This is quite simple to answer : individuals who have business on the sea. There is a need for marine insurance policy for ship-owners, transporters, seafarers, shipping companies, and all stakeholders on the water.
Requirements / Documentations (How to Get a Plan)
- Visit our website: www.cornerstone.com.ng and select the Marine Product
- Complete basic online form with details of the consignment and upload Proforma Invoice Document.
- Select from the list of payment options to make payment.
- Download the soft copy of the Marine Insurance Certificate and policy document upon successful payment which will be sent to your email.