Exporters face numerous challenges in their quest to transport goods safely across the globe. While insurance seems like an obvious solution to mitigate risks, many exporters express frustration with traditional insurance offerings. In this article, we discuss the reasons behind exporters’ disdain for insurance and explore alternative workarounds to recover cargo losses effectively.
One primary reason exporters harbor reservations towards insurance stems from the intricate nature of insurance policies. Fine print, exclusions, and complex terms and conditions often lead to confusion and disputes when filing claims. Exporters might find themselves entangled in lengthy battles over interpretation, which can significantly delay or even impede the recovery process.
Traditional insurance coverage for cargo often falls short of exporters’ expectations. Insufficient coverage limits, high premiums, and exclusions for certain types of cargo or specific damage nature can leave exporters exposed to substantial losses. This limitation breeds a sense of frustration among exporters, who believe their risks aren’t adequately addressed.
Exporters also frequently cite the slow and cumbersome claims process as a reason for their discontent. The lengthy procedures, excessive paperwork, unqualified clerks, and extended waiting times can further exacerbate losses, hinder cash flow, and impede business continuity. This dissatisfaction with the claims process has led exporters to seek alternative methods for recovering cargo losses promptly.
Alternative Workaround: Do not ensure cargo and pursue recoveries directly from liable carriers when cargo is damaged.
To circumvent the challenges posed by traditional insurance, exporters are increasingly relying on evidence gathering processes, upskilling teams to collect claim supporting documents.
While traditional insurance options may leave exporters dissatisfied, alternative approaches to pursue recovery directly for uninsured cargo, use support of trusted cargo claims recovery experts rapidly emerge. Exporters can now explore alternative solutions that better align with their specific needs, ultimately ensuring the goal to protect business bottom line from transit losses.
Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.