Several factors contribute to the complexity of managing cargo risks: a surge in cargo theft, accumulation of exposures and more global compliance requirements. In response, XL Catlin has unveiled a refreshed cargo insurance policy to help businesses manage the complicated task of transporting goods.
PRODUCT: Ocean cargo coverage
COMPANY: XL Catlin
BEST RATING: A (Excellent)
AVAILABILITY: Coverage is available through appointed brokers.
FOCUS: Sometime around 1688, in Edward Lloyd’s coffeehouse on London’s Tower Street, an informal group of shippers and investors gathered to develop financial protection contracts. Dedicated to ships and their important cargo, these contracts produced the world’s first insurance underwriting society.
Fast forward to today. XL Catlin has unveiled a refreshed cargo insurance policy to help businesses manage the complicated task of transporting goods.
“XL Catlin has developed an enhanced insurance policy to offer more comprehensive cargo insurance coverage on a worldwide basis,” explains Andrew D’Alessio, vice president and XL Catlin’s national ocean cargo practice leader. “Our policy extends coverage to address cargo exposures that continue to grow in size and complexity.”
According to the International Union of Marine Insurance, which represents the global marine insurance community, several factors contribute to the complexity of managing cargo risks: a surge in cargo theft, accumulation of exposures and more global compliance requirements for companies to navigate.
“Today’s cargo risks are extremely complicated,” D’Alessio says. “As a result, we have redesigned our cargo policy form, removing the complexity from the policy language and terms, as well as clearly outlining all critical policy information with an easy-to-read declarations page.”
XL Catlin’s integrated approach to marine cargo insurance requirements includes identifying, analyzing and managing exposures through its operations and partners in more than 200 countries around the world. The company has the ability to issue locally admitted policies, network globally to manage all aspects of claims resolution, grasp local rules and regulations, and use centralized account data management.
UNDERWRITING: Ranging from basic named perils to all-risk insurance, XL Catlin offers coverage against physical loss or damage to cargo shipped by international air, sea and over-land transits. The company writes coverage on a warehouse-to-warehouse basis. The standard policy form provides comprehensive coverage for concealed damage, consequential damage, expediting expenses, insufficiency of packing, fraudulent bills of lading, pairs/sets, customs damage, control of damaged goods, brands/trademarks and recoopering/repacking.
Optional coverage includes domestic inland transit, storage/warehousing, salesman’s samples, exhibitions, installation and special property floaters. The ocean cargo policy offers valuation options that allow the insured company to recover a loss at the selling price of the goods.
MINIMUM PREMIUM: $10,000.
TARGET: The policy is specifically designed for importers, exporters, manufacturers and any business that ships globally.
COVERAGE TERRITORY: Worldwide.
CONTACT: Andrew D’Alessio, vice president, National Ocean Cargo Practice Leader; XL Catlin, 200 Liberty Street, 25th Floor, New York, NY 10281; 212-915-6947.
Ronimarie Acord is an IA contributor.
