IMPORTERS/EXPORTERS

Who Needs Cargo Insurance?

Almost any company that sends goods overseas or receives goods from foreign suppliers must buy cargo insurance in one form or another.

Even a relatively small import business can require substantial cargo insurance, especially if they import high-value goods like electronics. Exporters and International Traders need cargo insurance whether they manufacture the goods or raw materials themselves, or act as the overseas sales agents of domestic companies.

However, many other companies require cargo insurance even though they are not specifically exporters or importers.

Manufacturing companies frequently purchase raw materials or components overseas. Or they ship components and materials for final assembly overseas, where labor costs can be lower. Other manufacturers may occasionally sell their products to foreign customers as well as domestic customers.

Retailers often have “house brand” products manufactured overseas (apparel and electronics are common) and import them for sale in the U.S. Others buy merchandise in foreign countries for special promotions or as part of their regular operations. Wholesalers and Distributors often deal in foreign –manufactured items bought directly from overseas sources. Other businesses often require cargo insurance for specialized purposes.

Contact: Walter Wynne, President, Capacity Marine Corporation,
1-800-222-2425, cmc@capcoverage.com