If you own an internationally-based company, it is your responsibility to secure everything that has to do with your commerce. That being said, you should be aware of the different coverage plans which you can avail to protect the entire business. For example, export insurance and coverage insurance. Although both are somewhat similar, these plans have its distinct features. Continue reading to learn more about it.
Export insurance is a special plan that covers the many details of dealing with foreign countries for the consignment of goods. This policy provides the following benefits:
• Locally-admitted coverage – this is the type of coverage that a foreign country insists on being purchased within that country. If you do not have an insurance carrier working on your behalf, you will have to find one in that foreign country and obtain this coverage directly from them.
• Differences in conditions coverage (DIC) – this kind of coverage is provided by your export insurance carrier. It supplies the coverage left out by locally-admitted coverage, raising it up to American standards.
• Liability coverage – this is your basic liability insurance covering loss by negligence once your shipment lands in a port. It includes legal fees you incur when dealing with foreign governments.
Cargo insurance is generally under the export insurance policy. While export insurance protects your shipment once it is in port, it does not protect it during transportation unless you have cargo insurance. There are two major parts of cargo insurance:
• Open cargo policy – this coverage protects the nature of the cargo itself, such as its value and shipping costs.
• Voyage policy – this coverage protects your cargo during a specific voyage.
Now that you’ve learned more about these plans, we bid you good luck in managing your venture.