How Does P&I Cover Cargo?

When you work in the marine industry, you might use P&I insurance to protect the vessels with which you work. They’re big, expensive, difficult to repair, even harder to salvage, and you need proper coverage.

But, what do you do about the cargo on those vessels? Is there cargo insurance on the market that can help you? Can P&I insurance cover cargo? Read through these insights to learn how P&I can truly save the day.

Defining Marine Cargo

What is marine cargo? Remember, marine cargo is more than an item you’ve placed on a ship. Marine cargo could be:

  • Awaiting the loading process
  • In the process of loading
  • Sitting on a ship that’s not en route to its destination
  • In the process of unloading
  • Sitting on a new dock awaiting transport

Because of these circumstances, you need insurance that does a little more than only protect items that are on the boat. You need P&I coverage

Cargo Loss

P&I coverage will handle cargo losses at any stage of the shipping process. Keep this in mind—not every issue is your fault. You may run into any number of issues for which you cannot account. This is what P&I is for. The cargo is lost and you file a claim against the policy. It’s that simple. 

Cargo Shortage

What if a cargo shortage occurs? There are several mistakes that could happen along the way, and it’s best to file an insurance claim before you try to determine what occurred. You can account for the shortage with an insurance claim, which is what your clients want.

After that, you can complete a full forensic investigation to determine how the shortage happened and how to prevent it in the future.

Cargo Damage

Cargo damage is just as devastating as a loss. Your clients can’t use damaged cargo, and you need insurance that will pay to replace or repair it. P&I is a good backup plan that will help you throughout the full shipping process

Remember, you cannot call damage a “part of doing business”. But, you can make P&I insurance part of your business model.

Cargo Delays

Cargo delays may also be covered by P&I insurance. This is especially important because some shipments are simply not useful if they’re delayed. There comes a time when clients want to cut their losses—and those losses become your losses. As a result, you should file an insurance claim that will help cover any payments you make to rectify the situation.

Cargo Loading

Of course, cargo loading is a big part of the process, but what happens when there are issues with the loading process? Again, you should plan to file a claim against your P&I policy instead of assuming that all is lost. Perhaps items cannot be loaded or unloaded? Perhaps you incurred extra costs just to complete the loading or unloading process?

This is why P&I coverage is always a good choice.

Contact Arrowood Insurance for Assistance With P&I Insurance for Cargo

Reach out to our marine industry experts at Arrowood Insurance for help when you need P&I coverage for cargo. You must protect everything you’re moving, and that’s why it’s important to purchase all the right coverages today because premiums are always cheaper than payouts.


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