However, the current times are very difficult. Economists and analysts fear a double-dip recession, as debt-stricken parts of the European Union are still in limbo. Many businesses are reporting lower revenues due to fewer orders. Some of their clients have been liquidated, which has many fearing the worst.
Now is the time to review your business risks and how you manage them. Cargo Insurance Coverage is not mandatory for some insurances. Many businesses will cut back on insurance and risk management when times are tough. These decisions are not taken lightly. Many people forget that accidents and other incidents can happen and they regret making these decisions without seeking advice.
One example of such a loss is the Costa Concordia, which was a cruise ship that ran aground on the Italian coast on the 12th January. However, the damage caused and the cost of repair and salvage are likely to exceed the ship’s value making it a constructive total lose. Although it was unlikely that anyone aboard the ship thought it would sink, even in the absence or severe weather, such things do happen. Carnival Corporation & plc were insured against such a loss. They would have lost their entire cruise ship if they had cut their marine insurance coverage.
Can any business afford to lose their cargo or ships in these economic times? While many would argue that this is not possible, those who stop their cargo insurance policies to save money risk a disastrous outcome that could lead to financial ruin.
However, things are about to get worse. It’s not the danger of Italy running aground that businesses should be concerned about, but the ice- and snowfall. The UK’s Army has received a level 4 cold weather alert. Temperatures are likely to drop as Europe experiences the same -11c temperatures.
Anybody who is interested in logistics will tell you that cold weather can be a problem. It can cause disruptions to supply routes and lead to huge losses. British roads are often affected by cold weather. Lorries can jack-knife along motorways and other goods vehicles are involved or overturned due to the bad weather. In extreme cases, planes may be grounded and rough seas may cause damage to cargo ships or stall them.
It is important that these businesses do not reduce their cargo insurance. The economic decline does not reduce the likelihood of an accident or business disruption. To do so would be to put your business at risk.
You have options. One option is to consolidate all of your cargo insurance into one policy. Another is to reduce the amount you need while still providing enough coverage to protect your business in the event of an emergency. A specialist broker in business insurance is the best way to accomplish this. They will assess your current risk management and recommend the best policy for you.
Tailored words, for example, give you the exact water-tight coverage you require without adding unnecessary extras. This can help you save money.
