Is your equipment adequately protected during transportation?
Different equipment face several risks during installation, transit, and temporary storage. To protect it, selecting the right type of inland marine insurance coverage is essential.
Businesses transporting machinery, tools and other valuable equipment may face risks of physical loss or damage during transit. Marine cargo or inland transit insurance can provide protection against specified risks while goods are being transported. Equipment used at construction sites or stored at other locations may require separate or additional coverage, depending on the policy.
Factors to Consider Before Choosing Inland Marine Insurance
Understand the factors below to select a cargo insurance policy that offers comprehensive protection.
Type of Equipment
The value and nature of equipment play an important role in determining the policy coverage. For example, electrical and electronic equipment often requires special protection due to its sensitivity.
Higher-value equipment may require a greater sum insured and a more detailed assessment of transit risks. However, the scope of coverage depends on the selected policy, insured perils, exclusions and any additional cover purchased.
How Frequently the Equipment is Transported?
For occasional shipments, businesses may consider a single-transit policy covering a specified journey. Companies transporting goods regularly may find an annual-open policy more convenient because it can cover multiple eligible shipments during the policy period. However, the overall cost and suitability depend on the policy terms, shipment values, premium structure and applicable limits.
Risks the Equipment is Exposed to During Transit
The risks an item faces during transit also determine the required coverage. Basic coverage works for small packages and short-distance transportation and covers fire and explosion.
However, if the equipment faces multiple risks, broader coverage is beneficial. This includes vehicle overturning, accidental collision and total financial loss during loading and unloading.
Types of Inland Marine Insurance Plans
Depending on how frequently the equipment is transported, businesses typically choose between two types of policies – a single transit policy and an annual open policy.
Single Transit Policy
A single transit policy covers a single specific shipment or transit. Businesses that transport equipment occasionally or for a one-time period can choose a single transit policy. The premium charged is only for a single transit, making it a simple and convenient option.
Annual Open Policy
An annual open policy provides coverage for multiple transits during the policy tenure. This policy is for businesses frequently transporting equipment. With this policy, businesses need not purchase a separate policy for each shipment, saving time and effort throughout the year.
Single-transit and annual open policies offer different levels of protection. Businesses can choose between broader and basic coverage based on their needs. The right combination depends on several key factors, such as the type of equipment transported, how often it is transported, and the risks involved.
By considering these factors, businesses can choose a policy that offers adequate protection without incurring unforeseen expenses.
Protect Your Business Equipment with TATA AIG Inland Marine Insurance
Safe handling, planning, and packaging reduce the risk of equipment damage during transit. However, unexpected incidents may still occur. Inland marine insurance provides financial protection in these situations, allowing businesses to operate with confidence.
Understanding TATA AIG's Equipment and Transit Insurance Options
TATA AIG offers marine cargo and transit insurance for eligible goods transported by road, rail, air or sea, with single-transit and annual-open policy options. It also provides contractors' plant and machinery insurance for specified equipment used at construction sites.
The coverage available depends on the product selected, insured locations, applicable exclusions, limits and any additional cover. Businesses should review the relevant policy wording to determine whether equipment requires protection during transit, storage or operation.
