Frequently
Asked Questions
Questions about coverage and reasons to get your cargo insured? We’ve got you covered.
Frequently
Asked Questions
Questions about coverage and reasons to get your cargo insured? We’ve got you covered.
Do I need cargo insurance?
Loss or damage to cargo results in financial impact for those with an insurable interest.
Accidents happen and transportation companies have limits of liability.
Without cargo insurance, any recovery will likely be well below the value of your goods.
When you purchase cargo insurance, the insurance company assumes the risk.
Is it worth purchasing cargo insurance?
The cost of cargo insurance typically adds a fraction to the total cost of an item. When you purchase All Risk coverage with no deductible, you have the peace of mind in knowing you will be reimbursed 100% of your insured value in case of a loss.
What is the benefit of dealing directly with the insurance company?
Direct access to the insurance company with no intermediaries typically results in a straightforward, speedy claim resolution.
What is the importance of an insurance company rating?
Rating agencies evaluate the financial strength of insurance companies. Insurance companies have a financial obligation to policyholders. It is important to confirm the rating of your insurance company by a recognized rating entity. Seven Seas Insurance holds an A (Excellent) rating from AM Best. AM Best is the world’s first credit rating agency and is focused on the insurance industry.
Should I secure a policy per shipment or an Open Cargo Policy?
It depends on your cargo insurance needs.
A Special Cargo Policy or Single Shipment Policy offers coverage for a single shipment.
An Open Cargo Policy is an agreement between the Insurance Company and the Assured that provides coverage terms and conditions for all cargo covered under the contract.
When you have occasional shipments, a policy per shipment may satisfy your needs.
If you have frequent weekly or monthly shipments, you may qualify for an Open Cargo Policy.
What is General Average?
When a vessel owner declares General Average, expenses are shared on a pro-rata basis by all parties involved in the sea venture. Even if your cargo did not suffer damages, as a cargo owner you will be required to post a bond or cash deposit before your goods can be released. An engine breakdown, vessel grounding, and fire on board are examples of events that can trigger a General Average situation.
The following are essential elements of a General Average:
- Due to imminent danger, there must be an extraordinary sacrifice to save the voyage in order to preserve the other interests involved in the common venture.
- The act has to be reasonable, intentional, voluntary and declared by the vessel owner.
- The sacrifice must be successful.
The process of filing claim with a carrier can be lengthy and often takes years to resolve. Seven Seas offers coverage for General Average and will work promptly to arrange the release of cargo involved in a General Average incident at no additional cost to you.
What should I do if my cargo is lost or damaged?
You should report the loss to the transportation carrier in writing advising your intentions to submit a claim.
If your shipment was insured by Seven Seas, promptly send a notification to claims@sevenseasins.com.
Document important information to support the loss that occurred during the coverage period.
Take photos to illustrate the extent of the damage.
We encourage prompt filing to expeditiously process your claim.
You may file your claim online here
Don’t wait until you have a loss to review your coverage.
Partner with an insurance provider you can trust to deliver
the peace of mind you need to ship confidently.