Reasons to insure your ship before departure
Ships can be amazing modes of transport. It is increasingly used for transportation of goods from one country to another. It is, in fact, the cheapest mode of transport when it comes to transportation of goods.
If your shipping company is using a fleet of ships to transport the goods, then it is essential that such a fleet is completely insured. There are many reasons why this should be done. Following are some of the most compelling reasons listed to do so:
There is no excuse for this requirement. If it is required by the law, then it is imperative that you get the car insured. Otherwise, it can get you in hot water. In almost all countries all across the globe, shipping companies are required to get their ships insured by the relevant agencies. If it is found by the relevant authorities that the ship is not insured, then the license to operate as a shipping company can get cancelled as well. You may even be required to pay a certain sum of penalty. Most of the DHL near me also get their vehicles insured.
Pay for third party damages
The shipping insurance is normally pretty much comprehensive. It contains most of the contingencies against which you will be insured. It will also provide you with sufficient protection from the expenses which may arise out of third party claims. For instance, if some gets damaged on board, or if there is a minor accident and physical damage is occurred, then the insurance company will bear all such damages. This is one of the major reasons to get insurance.
If the insurance is comprehensive, it will not only provide protection to you but the ship as well. For example, if any damages are caused to the ship, then you will be able to claim the same from the insurance company. There are chances that your ship can get damaged as a result of natural calamities such as explosion or fire. Insurance coverage can provide sufficient protection in all terms.
Cover the legal costs
This is a much undermined reason. When you are into shipping business, you will be exposed to a lot of legal costs. This exposure can be limited by using shipping insurance. For instance, if damage is caused to the goods that are being shipped and the shipper files a claim against you in the courts of law, then such costs can also be covered by the insurance agencies.
The bottom line
Vehicle insurance can be of paramount importance. This is especially critical for shipping companies. These companies are already exposed to a lot of financial and legal exposure which needs to be reduced at all times.
Above are some of the major reasons to get insurance. However, you should get the ships insured from a reputed agency. This is to ensure that all contingencies are covered in the insurance policy and sufficient level of protection is granted.