The Export Credit Guarantee Corporation, also known as ECGC, offers insurance protection to exporters against foreign purchasers’ non-payment owing to commercial and political concerns. The premium that the exporter pays to ECGC in order to use the insurance coverage is known as the ECGC charge. The cost is determined by the creditworthiness of the exporter, the destination nation, and the nature of the exported items.
Transport of products by land, sea, or air is all covered by cargo insurance in the event that they are lost or damaged. The loss or damage to the cargo of the freight forwarder during transportation, on the other hand, is covered by freight insurance. The freight forwarder typically purchases freight insurance, whereas the exporter or importer purchases cargo insurance.
Who Can Make a Cargo Insurance Claim, then? In the event that the products are lost or damaged, the cargo insurance policy’s beneficiary may make a claim. The exporter or importer who purchased the cargo insurance policy is typically the beneficiary. However, a third entity, such as a bank or a buyer, may also be awarded the cargo insurance coverage.
One can also wonder who is in charge of shipping insurance. Depending on the shipping conditions that the buyer and seller have agreed upon, the buyer may be responsible for purchasing shipping insurance. The exporter is in charge of setting up and paying for the insurance if the shipping terms are CIF (Cost, Insurance, and Freight). The buyer is in charge of setting up and paying for the insurance if the shipment terms are FOB (Free on Board).
Businesses that produce, distribute, or sell items must have products liability insurance. This insurance protects against legal obligations resulting from harms or losses brought on by the company’s goods. No of the size of the company, products liability insurance should be considered to safeguard against future legal claims.
In conclusion, insurance is essential to international shipping, and every organization must comprehend the many types of insurance. While cargo and freight insurance cover the loss or damage of goods during transportation, the ECGC charge is a premium paid for insurance coverage against non-payment by international buyers. The duty for shipping insurance depends on the shipping conditions that the buyer and seller have agreed upon, and the beneficiary of the cargo insurance policy may make a claim for insurance. To protect themselves from legal responsibilities, companies that produce, distribute, or sell products need products liability insurance.