Cargo accumulation is a new trend in the shipping industry. Ships are getting bigger, storage facilities are getting bigger, and more containers are being moved and kept in fewer places. Although cargo accumulation can mean saving money in some ways, it is also leading to catastrophic losses when something goes wrong. A damaged ship, a fire, or a delayed shipment could mean the loss of a significant amount of cargo.
When shipping large amounts of cargo at one time, shippers are putting lots of eggs in one basket. When a loss event takes place, companies stand to lose millions in one fell swoop.
While many companies believe that their marine insurance protects them from cargo losses, not everyone understands that cargo accumulation has taken place only in recent years. Insurance coverage has not grown as quickly as the boats have. If a catastrophe takes out a large amount of cargo, it is possible that your insurance policy won’t cover 100 percent of your losses.
How can you protect against these issues? Prevention comes in two different strategies. First, be sure that you have enough insurance coverage for the business you are doing. Although it may be painful to pay higher premiums, protecting against a large loss event is vital. Secondly, consider the dangers that come with cargo accumulation: are you taking too many risks with your cargo? Are you trying to move or store too much at once?
Marine insurance is only getting more complex as the shipping industry grows and changes. Having a knowledgeable, experienced marine insurance attorney at your side could greatly help when you need to understand your policy or file a claim. To speak with a lawyer at the Voss Law Firm today, call our team and schedule a free, private meeting: 888-614-7730.