International shipping insurance

Part 1: The Essential Foundation (Introduction & Basics)

1.0 Introduction: The Global Trade Imperative

• 1.1 Hook: Start with a high-impact statistic or anecdote about a significant cargo loss (e.g., “In a $19 trillion global market, are you gambling on your shipments?”).

• 1.2 The Core Question: Why insurance is not an expense, but a strategic necessity for every business shipping internationally.

• 1.3 Introducing Globax Solutions: Briefly position the company as the trusted partner providing tailored, comprehensive coverage.

• 1.4 Post Thesis: What the reader will learn (e.g., the difference between carrier liability and true insurance, types of coverage, and the claims process).

2.0 Understanding the International Risk Landscape

• 2.1 The Myth of “Standard Carrier Liability”: Explain why the default coverage provided by air/ocean carriers is often woefully inadequate (e.g., capped by weight, not value; exclusions).

  • Key Concept: Hague-Visby Rules and other conventions limit carrier financial liability.

• 2.2 The Many Perils of Global Transit:

  • Natural Disasters (e.g., severe weather, port closures).

  • Accidents (e.g., vessel grounding, collision, aircraft loss).

  • Human Factors (e.g., theft, pilferage, mishandling, loading/unloading errors).

  • Geopolitical Instability (e.g., war risk, strikes, civil commotion, piracy zones).

  • General Average (A complex maritime term that must be covered).

3.0 What is “General Average” and Why it Can Sink Your Business

• 3.1 Definition and Example: Define General Average (GA) as a maritime law where all parties (ship owner and cargo owners) proportionally share the financial loss when part of the ship or cargo is sacrificed to save the whole (e.g., jettisoning cargo in a fire).

• 3.2 The Financial Nightmare: Explain that without insurance, cargo owners must pay a security bond before receiving their cargo, even if their goods were undamaged.

• 3.3 The Globax Shield: How a comprehensive policy protects clients from having to pay the General Average bond.

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Part 2: Navigating Coverage Options

4.0 The Three Pillars of Cargo Insurance (Institute Cargo Clauses)

• 4.1 All-Risk Coverage (ICC-A):

  • What it covers: The broadest form, covering all risks of loss or damage except those specifically excluded.

  • Best for: High-value, fragile, or finished goods.

• 4.2 Named Perils Coverage (ICC-B & C):

  • What it covers: Only specific, listed perils (e.g., fire, collision, sinking).

  • What it excludes: Theft, non-delivery, handling damage.

  • Best for: Bulk commodities, lower-risk/low-value cargo.

• 4.3 Tailored Solutions: Discuss the ability to add War, Strikes, Riots, and Civil Commotion (SRCC) coverage as an essential add-on.

5.0 Policy Types: Per-Shipment vs. Open Policy

• 5.1 Voyage/Single Shipment Policy:

  • Pros: Ideal for infrequent shippers.

  • Cons: Requires administrative work for every single booking.

• 5.2 Open Cargo Policy (The Globax Standard):

  • Pros: Automatic, continuous coverage; no need to arrange insurance for every shipment; volume discounts; superior risk management.

  • Best for: E-commerce businesses and frequent importers/exporters.

6.0 Determining the Insured Value (The “C.I.F. + 10%” Standard)

• 6.1 The Formula: Explain how to calculate the true value of a shipment: Cost (of goods) + Insurance + Freight (shipping costs) + 10% (for profit/incidentals).

• 6.2 The Mistake to Avoid: Warning against under-insuring goods and the potential for a co-insurance clause to reduce a claim payout.

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Part 3: Practical Application and Claims Management

7.0 The Strategic Business Benefits of Insurance

• 7.1 Financial Stability: Protects cash flow and profit margins.

• 7.2 Enhanced Customer Trust: Allows for swift replacement or refund, safeguarding the brand reputation.

• 7.3 Trade Finance Facilitation: Banks and lenders often require proof of insurance for Letters of Credit and financing.

• 7.4 Peace of Mind for Your Team: Removes the burden of financial recovery from logistics and sales departments.

8.0 The Globax Solutions Claims Process: Speed and Simplicity

• 8.1 Immediate Action: What to do immediately upon discovering loss or damage (e.g., note exceptions on the delivery receipt, take photos).

• 8.2 Documentation is Key: A checklist of essential documents for a fast claim:

  • Bill of Lading/Air Waybill.

  • Commercial Invoice.

  • Packing List.

  • Survey Report (if applicable).

  • Notice of Claim against the carrier.

• 8.3 Globax Advantage: Highlight how Globax Solutions’ dedicated claims support simplifies the process and maximizes recovery compared to dealing directly with a carrier.

9.0 Risk Mitigation Beyond Insurance

• 9.1 Proper Packaging: The insurer will deny claims if packaging is deemed inadequate. Provide a quick guide to international packaging standards.

• 9.2 Carrier Vetting: Choose reliable, certified carriers (like the ones Globax partners with).

• 9.3 Technology and Tracking: Mention how real-time tracking (often integrated with Globax services) helps proactively manage risk.

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Part 4: Conclusion & Call to Action

10.0 Insure Your Growth. Don’t Just Ship It.

• 10.1 Summary of Key Takeaways: Reiterate the importance of comprehensive, All-Risk insurance and the dangers of relying on minimal carrier liability.

• 10.2 Final Thought: Insurance is the foundation that enables businesses to expand globally without fear.

• 10.3 Call to Action: Ready to secure your global supply chain?

  • Link to a quote request page.

  • Link to a Globax Solutions Insurance Policy Comparison guide.