The today business environment for shipping companies is characterized by faster globalization and frequent cross border shipments, and, therefore, ships are open to various risks. Altered brackish and marine organisms, spoiled goods, and rare climate shocks are some of the critical losses that befit maritime operations. Cognisance of the above emerging increased complexity in the above risks is what has led First Policy to develop its innovative Marine Sales Turnover Policy, changing the face of marine risk management.
The Marine Sales Turnover Policy is designed to address issues of shipment and transport in organizations that frequently hire service providers in this line. Contrary to the conventional approach of insurance where policies are sold for each shipment, this initiative makes it easier as the policy is sold depending on the turnover of a company’s sales. It is also quite flexible, thus allowing businesses to address their maritime risks with the simplicity that is not always associated with documentation and monitoring.
One of the interesting features of this policy is its systematic approach to risk considerations. The marine environment presents certain risk factors to any firm with business activities in ships, these include; Ship damages and losses, Damages or losses in carriage of goods and liabilities occurring from third party claims. All these components are incorporated in the Marine Sales Turnover Policy, which provides a coverage that is similar to Marine and Cargo Insurance, which protects the products in transit and the Hull Insurance that protects the actual physical structure of the vessel. This makes it possible for business organizations to control the downside risks such as disasters including the fate of ships or lost shipments.
There are other types of insurance, such as the freight insurance, that is the one that covers the lost of sales that could have been made out of merchandise that was destroyed or which took a long time to arrive at its destination. This is a crucial aspect of financial stability especially for those companies that rely on frequent transportation of goods as a break drains them of a lot of wealth.
Alternatively, the model applies to shipping business organizations regardless of the type of business. No matter if the goods are in transit by air, road or sea, the policy is flexible enough to cater for the various risks of transport means. Thus, it is especially effective for organizations that have their offices located at different places and for organizations interacting with several carriers. It blends the detail of marine and cargo insurance with the simplicity of the turnover method and guarantees businesses remain protected from periodic fluctuations in turnover of freight.
There are other policy aspects of that policy such as the protection and indemnity insurance more commonly referred to as the P&I that is expected to provide for any legal risks that may arise out of third party risks including harm to any crew or to property. Regarding the P&I insurance it signifies that irrespective of the business being involved in an accident it will not sup instead it is safe from high expenses regarding lawsuit and compensation claims that they would otherwise have to pay out appealing legal cost against their businesses, immunity of doing business without the risk of facing astronomical legal costs thrown at them. This makes First Policy the only insurance company that comprehensively insured ship owners and operators legally and physically through protection and indemnity insurance.
The Marine Sales Turnover Policy is not simply offering multiple coverages; it is a way of presenting businesses with risk management solutions. Thus, the policy is based on the actual sales turnover, so firms do not have to focus on the specifics of shipment or define premiums for each operation. But what benefits do they get from this? They can dedicate time and energy to growing their business knowing full well that the entire shipping process can be addressed by a single policy.
Conclusion
Thus, it can be safer to assume that the policy at issue – Marine Sales Turnover Policy from First Policy – provides the key to a completely new approach to how companies manage their marine exposures. Therefore, this policy has adopted the turnover coverage for hull insurance, freight insurance, marine and cargo insurance as well as protection and indemnity insurance to provide one stop MAV for the companies that participate in international shipment. It removes all the issues related to the conventional marine insurance that hampers the flow of risk management and protects the finances of businesses against all the issues related to the marine trade.
