Cargo Insurance

In today's interconnected global economy, businesses face a multitude of risks that can disrupt their supply chains and impact their bottom line. Geopolitical disruptions, climate risks, theft and damage can lead to delays, increased costs, and operational challenges. As businesses navigate these complexities, having robust cargo insurance is essential to support resilience and continuity.

What is Cargo Insurance?

Cargo insurance is designed to protect against losses due to physical loss or damage to goods during transportation, whether by road, rail, sea, or air. It covers a wide array of goods, including raw materials, single components, finished products, and appliances. Cargo insurance offers comprehensive protection, ensuring goods are protected during loading, unloading, storage, and transportation, both domestically and internationally.

Why is Cargo Insurance Important?

Cargo insurance is important for businesses that rely on the timely and safe delivery of their products to customers and partners around the world. It helps to:

• Mitigate Financial Risk: Cargo insurance safeguards financial interests by covering losses that may occur during transit.
• Fulfil Contractual Obligations: Cargo insurance is often required as part of a sales contract and also protects the interests of banks and third parties involved in financing transactions.
• Complement Carrier Liability: While haulage and shipping companies have limited liability by contract or law, cargo insurance offers additional protection against potential losses.
• Offer Protection from General Average: General Average is a legal principle in maritime law, whereby all cargo owners proportionately share losses resulting from voluntary sacrifice or costs incurred in order to prevent a total loss. Following the declaration of a General Average, cargo will be held pending receipt of General Average Guarantees and Bonds. If a cargo owner has insurance, insurers can handle these situations on behalf of clients and provide the required guarantees to allow their cargo to be released.

What Coverage Does Cargo Insurance Provide?

Coverage typically protects against risks such as damage, theft, fire, contamination and natural disasters. But it can also be tailored to meet the needs of the products being insured – each type of cargo has specific risks associated with it. Specific types of coverage include:

• General Cargo: Provides coverage for goods being transported, protecting against risks such as damage, loss, or theft during transit.
• Excess Storage: Provides coverage for goods stored beyond a standard storage period, protecting against risks such as damage, theft, or loss while the items are in storage.
• Stock Throughput (STP): Provides continuous coverage across the entire supply chain, from point of origin to the final destination, including manufacturing, storage and transit phases. It is particularly beneficial for businesses with complex logistics operations, as it consolidates multiple insurance needs into a single policy.
• Project Cargo/Marine Delay in Start-Up: Provides coverage for all parties with a financial interest in the successful delivery of cargo and the start-up of a related project, ensuring that damaged cargo can be repaired or replaced, and financial losses from a delay in the project's start-up is mitigated or indemnified.

How Aon Can Help

Aon offers comprehensive cargo insurance solutions tailored to meet the unique needs of businesses across various industries, including:

1. Broking: Our broking services aim to secure the best coverage for your cargo, addressing risks from geopolitical disruptions to digitalization. We leverage Aon's international expertise and extensive network to provide tailored solutions that protect your business in today's global trade environment.
2. Risk Consulting: Expert advice on risk financing, climate modeling, and engineering solutions to identify, assess, and mitigate risks effectively. We help businesses navigate complex risks, wherever they are in the world.
3. Claims Management: Proactive loss prevention and efficient claims handling for both standard and complex cases, ensuring swift recovery and minimal disruption. Our claims management services are designed to provide peace of mind and ensure that your business can quickly recover from losses.
4. Global Cargo Network: Localized expertise and coordination across 180 countries, ensuring seamless operations with robust network administration and IT support. Our global presence allows us to provide consistent and reliable service to clients worldwide.

At Aon, we help organizations transform challenges into opportunities and build risk resilience. With our comprehensive risk management solutions, businesses can navigate the complexities of global trade with confidence.