由 caicai8478 Core Principle: Duty of Disclosure
When insuring oversized cargo, the first priority is to proactively, fully, and accurately disclose all material facts to the insurance company. Any concealment could lead to a future claim denial. Material facts include:
The exact dimensions and weight of the cargo.
The fact that the cargo is overweight, overlong, or overhigh.
The specific name and nature of the cargo (e.g., whether it is precision equipment).
The packaging and reinforcement method (e.g., solid wooden pallets, steel racks).
The origin, destination, and transportation route.
Part 1: Identifying the Special Risks of Oversized Cargo
Why is the standard insurance process insufficient? Because the risks are completely different:
Risk Types and Specific Manifestations
Loading and Unloading Risks: Lifting errors and forklift imbalances can cause cargo to slip or collide, which is the most common risk.
Stowage Risks: Inadequate reinforcement can cause cargo to shift during transport, leading to collisions or friction with other cargo or the container walls. Crushing Risk: Due to irregular shapes and uneven stress points, equipment may be crushed by timber/lashings during stacking or reinforcement, causing deformation or damage.
General Average: If your oversized equipment shifts and causes a vessel accident (such as capsizing), you may be required to contribute to the overall loss.
Theft Risk: High-value equipment is more vulnerable to thieves, especially during transshipment and storage.
Inspection Risk: Repeated loading and unloading during customs inspections significantly increases the likelihood of damage.
Part II: How to Buy Insurance Correctly – A Step-by-Step Guide
Step 1: Determine the Insured Value
Standard: Typically, it is 110% of the invoice value of the goods (with an additional 10% to cover expected profits and incidentals).
Special Circumstances: For used equipment or goods of exceptional value, you will need to negotiate an “agreed value” with your insurance company for insurance.
Step 2: Choose the Right Insurance Terms
All Risks: This is the only recommended option. It provides the broadest coverage, including losses from all external risks caused by all accidents at sea and onshore. Don’t choose “WPA” or “FPA” insurance just to save a small premium. These policies offer no coverage for accidents like improper loading and unloading.
Step 3: Prepare your insurance application materials and accurately disclose them.
Provide the following information to your insurance company or broker, highlighting the oversized nature of the shipment:
Invoice and packing list: Clearly indicate the value of the shipment, and list the oversized shipment separately, specifying its dimensions and weight.
Shipping information: Vessel name, voyage number, bill of lading number.
Cargo description: For example: “One injection molding machine (oversized), weight: 5,500 kg, dimensions: 4.2m x 1.8m x 2.1m. Reinforced on a solid wooden pallet and vacuum-laminated.”
Photos: Photos of the package after reinforcement and before loading to demonstrate proper packaging.
Step 4: Confirm Key Policy Terms
After receiving the draft policy, be sure to confirm:
Coverage Start and End: Ideally, it should be a “Warehouse to Warehouse” clause, covering the entire journey from the shipper’s warehouse to the consignee’s warehouse.
Deductible: Oversized shipments may have a deductible. For example, losses under $500 may not be covered. Confirm that this amount is acceptable to you.
Exclusions: Carefully review the exclusions. Ensure that the main risks you are concerned about (such as loading and unloading accidents) are not excluded.
Special Provisions: Are there any special annotations or clauses on the policy specific to your shipment?
Part 3: Common Pitfalls and How to Avoid Them
Trap 1: Defaulting to Standard Cargo Coverage
Risk: After a claim occurs, if the insurance company discovers that the shipment is oversized, they may deny coverage or pay a proportional amount (for example, only covering losses for standard parts) due to “failure to disclose information.”
Solution: Proactively disclose information and request written confirmation from the insurance company that they accept coverage.
Trap 2: Purchasing Insurance Through an Agent at the Port of Destination
Risk: Some insurance policies offered by foreign agents may have limited local coverage, making claims processing inconvenient.
Solution: Try to purchase insurance in the country of departure through a familiar insurance company or broker to facilitate prompt communication and resolution after an accident.
Trap 3: Undervaluing the Goods
Risk: Understating the value of goods to save on premiums. In the event of partial loss, the insurance company will pay the “underinsurance” percentage, potentially costing you more than you gain.
Solution: Insure the goods for the full value of the goods.
Part 4: What to Do in the Event of an Accident? – Key Points for Claims
Notify Immediately: Notify your insurance broker or insurance company immediately.
Protect the Scene: Preserve the scene as much as possible while awaiting the arrival of the insurance company’s surveyor.
Collect Evidence:
Take photos and videos: Damaged areas, overall condition, packaging, shipping marks, etc.
Related Documents: Bill of Lading, Insurance Policy, Packing List, Invoice, Cargo Damage Report
Make a timely claim: Submit formal claim documents within the specified timeframe as required by the insurance company.
Your Insurance Self-Checklist
Have you proactively and in writing informed the insurance company of all details regarding the cargo’s excess weight and size?
Is the insured value 110% of the invoice value?
Is the policy selected “All Risks”?
Is the coverage “Warehouse to Warehouse”?
Have you carefully reviewed the deductible and exclusions?
Have you received and reviewed the policy to ensure all information is correct?
Have you provided a copy of the policy to the relevant parties (e.g., the shipper, yourself)?
Finally, remember: Insurance isn’t a cost; it’s a peace of mind for your cargo during the risky journey. For high-value, oversized shipments, this expense is absolutely worth it. Don’t skimp on the big picture.