November 22, 2016
Claims Corner: Marine Cargo Insurance
Severe storms and other natural disasters can cause significant damage to homes, businesses, and shipments. In 2012, hurricane Sandy hit the east coast of the United States (among other countries) and created much destruction along its path. Cities were evacuated and commercial operations ceased. Once the water receded and damages were assessed, the National Hurricane Center dubbed it the second costliest tropical storm, with an estimated damage near $50 billion.
In the following claims examples, the insured had an “All Risk” cargo insurance policy that covered their shipments while at the port.
A shipment of lamps and lighting fixtures were destined for the Philippines. It was at the port when hurricane Sandy made landfall in New Jersey and flooded the area. The insured had an “All Risk” insurance policy and filed a claim of $75,000 for total loss of the shipment due to water damage. Part of the shipment was determined to be salvageable, and a payment of $39,619 was made.
In another claim example, a shipment of 12 vehicles were destined for Turkey from New Jersey. While these vehicles were in a warehouse at port hurricane Sandy hit. The shipment sustained water damage and the insured filed a claim of $94,371 for a portion of the shipment that was damaged. The insurance company paid the full claim amount.
Avalon’s “All-Risk” Cargo Insurance policy provides the broadest form of protection available for physical loss or damage to the cargo. In instances of fire, storm, hijacking, theft or pilferage, an “All-Risk” policy will cover the shipment in accordance with policy terms and exclusions. For additional information, email us or visit our cargo insurance page to learn more.