Are you shipping goods across the sea and worried about potential risks? The number of containers lost at sea was up by 18%, says the World Shipping Council (WSC). Seeing this downward trend, it’s critical to get reliable protection coverage to safeguard your cargo from possible mishaps during transit.
One way to do this is by purchasing marine cargo insurance. However, what if we tell you there’s something better you can adapt as an alternative or in addition to your traditional insurance?
Twill Value Protect — a simple digital solution that extends the terms of liability of cargo carriage and covers aspects not usually included in traditional ocean cargo insurance.
In this article, we explore:
What is marine cargo insurance & why do you need one
What is covered under your marine cargo insurance
What are the different types of marine insurance
What is Twill Value Protect, and how it’s better than traditional insurance
This will help you make an informed decision about protecting your assets during transit and which option best fits your business needs.
💡 Note: In this article, we’ve used the terms ‘marine cargo insurance’, ‘ocean cargo insurance’, and ‘marine freight insurance’ interchangeably.
What is Marine Cargo Insurance?
A contract of indemnity, marine cargo insurance helps protect shippers from financial losses incurred due to accidental damages or loss of goods/containers transiting via sea.
What is the difference between marine insurance and cargo insurance?
Marine insurance covers damages to vessels, cargo, and containers specific to sea transit only. It also covers any costs incurred at terminals, equipment usage, and between transfers. Conversely, cargo insurance provides general coverage to goods in transit via rail, road, air, and/or sea.
Usually, a marine insurance policy covers cargo insurance as well.
Why is Marine Cargo Insurance Necessary?
Accidents come unexpected. When importing or exporting internationally, your cargo can get lost or damaged for numerous reasons, such as natural disasters, theft, fire, etc. So, anyone who uses ocean shipping — small shippers, import/export merchants, carriers, or businesses — needs marine insurance to help navigate shipping-related risks.
What is Covered Under Marine Cargo Insurance?
While the covered areas in your marine policy vary as per the coverage provided, here’s a general list of what’s covered and what’s not covered:
Depending on the coverage offered, there are different types of marine cargo insurance policies like all-risk cargo coverage, named perils coverage, marine open policy, with average (WA) coverage, and so on.
Ultimately, the right marine insurance coverage for your business depends on the type of cargo you're shipping and your specific requirements.
Worried about your marine insurance coverage terms? Fret not. We’ve something better to offer with Twill Value Protect. Explore now!
How Much Does Marine Cargo Insurance Cost on Average?
On average, marine cargo insurance costs in the US can range from 0.1% to 2% of the value of the goods being shipped. However, this is an estimate. The actual costs may be higher or lower depending on various factors.
What are the factors that affect marine cargo insurance?
Various factors determine marine cargo policy pricing, such as type of freight shipped, vessel route, destination, the value of goods, general liability, supply market volatility, government regulations, level of coverage needed, loss history of the insurer, and costs set by the company.
How is Twill Value Protect Better Than Marine Cargo Insurance?
While ocean cargo insurance is a traditional insurance, Twill Value Protect is an alternative to insurance. Both of them provide coverage to protect goods during sea transportation. But here’s where traditional marine cargo insurance falls short:
Traditional marine cargo policies are not digitally integrated and generally have a longer processing time.
Ocean freight insurance policy can be unclear about the terms of coverage offered due to multiple clauses and service levels.
As a small shipper, it can become challenging to review every term, mainly because you handle everything on your own and might not be well-versed with the insurance terminology.
Many times, some damage costs are not covered. Other times, some costs can be hidden, which adds to the overhead costs of shipping, thus cutting profits.
Most of the risk of losses sits with you in events of damage, which can burn a large hole in your pocket.
At Twill, we value our customers and their businesses. And aim to provide great benefits and value protection on shipped goods.
Here’s a video explainer of Twill Value Protect for better understanding:
What is Value Protect by Twill?
Twill Value Protect provides extended liability and is an affordable alternative or supplement to traditional ocean cargo shipping insurance. It has a simple claim process with higher claim recovery limits — all with just a few clicks. Everything digital and online :)
Keep track of all your shipments, manage bookings, and buy Value Protect — on Twill's integrated freight booking and management platform. In case of any claim requests, you can make a claim online with less documentation required at no additional costs.
When you sign up for Value Protect with Twill, you get:
Single point of contact with a dedicated customer service team
Quick query resolution and claim settlement
No hidden charges, as all costs are stated upfront
100% transparency with NO DEDUCTIBLE COSTS for claims
Online processing of requests with less documentation at no additional costs
Value Protect package starts from as low as USD 29 — offering compensation of up to USD 150,000 of cargo value.
You can purchase Twill Value Protect as an added service during or after your shipment booking. Explore our flexible pricing options as per your specific business needs.
Twill’s customer, CV Megatrading Agri Corpora, is already using Value Protect and says:
“Now, we can add Inland Transportation, Customs Clearance Services, Value Protect, and other services easily online and don’t need to find other partners and providers for these additional services.”
Get Better Cargo Protection With Value Protect
Safeguard your valuable assets during transit and ship hassle-free with Twill Value Protect. Be insured and assured with Twill Value Protect. Have more queries? Reach out to our expert customer support.