Marine insurance is as old as marine trade and has existed in various forms dating back to 3000 BC, however the oldest marine policy known to have been issued was on a vessel named Santa Clara, and the oldest policy document in existence was dated April 24th, 1384 covering four bales of textiles on a journey from Pisa to Savona.

Basic concepts of marine insurance were brought by the Lombard’s to northern Europe and England in the 13th Century.  By the 17th Century, London, with the emergence of the Lloyd’s of London Association, had developed into a leading center for marine insurance.

The well-known Lloyd’s of London traces its roots to a coffee shop founded by Samuel Lloyd in 1688 and was favoured as a meeting place for the transaction of insurance business amongst underwriters and merchants.  By 1734, the official list of vessels and values known as the “Lloyds List” was first published.  More than 250 years later, it continues to serve as the leading shipping list in the marine insurance industry and Lloyds of London is still acknowledges as the largest meeting place for underwriters and shippers to transact marine insurance business.

What is cargo?

Simply stated, cargo is defined as all goods which are sent abroad by sea, air or post, or which are waterborne during any stage of their transportation.  Cargo can be insured under a marine cargo policy.  This insurance can be placed for individual shipments or under a permanent contract known as an open policy.

What is meant by an “open” policy or cover?

An open policy is a contract prepared in general terms covering specified goods on agreed conditions.  Although no sums insured are stated, limits are applied to any one conveyance or location.  It is not uncommon for open policies to be written on a very wide basis to cover all goods and merchandise of every description shipped anywhere in the world.  These policies require fairly prompt notification of each shipment; however, failing to do so does not necessarily void the contract.

Ogilvy & Ogilvy have designed an Importers Policy that like open policies is suitable for most merchants sending or receiving goods, and its chief advantage is that coverage is automatic.  Rates and conditions can vary, so the best way to get the coverage and rating that best suits your company’s is to fill in the Ogilvy application. Included is information as the type of goods involved, where shipments are going to or originating, the limit required for each shipment and any previous losses.

How do you know if you need an Ocean Cargo Policy?

Only the owner of the goods can insure them, but they can appoint an agent to deal with this on their behalf.  Any other party which might be a potential owner (because they are hoping to reach agreement on the purchase of the goods) may arrange insurance, but at the time of an incident which might give rise to a claim, they must be able to establish a legal insurable interest. 

In any sale of goods, the ownership will pass from the Seller to the Buyer.  The Contract or sale will state the responsibilities of each party and those responsibilities are normally referred to by using the INCOTERMS.

Although it may not be your responsibility to insurer the goods, you can elect to obtain your own Marine Policy. Outlined below are the advantages of placing marine insurance in Canada.

1. “Warehouse to warehouse” protection is provided with terms of insurance specifically designed for the insured’s goods and method of shipment.  Such insurance provides coverage for the full exposure, at proper values and adequate limits. 
2. With an Open policy, the insured is automatically covered for each shipment.
3. Claims are payable in local funds.
4. Local insurance reduces the probability of misunderstands, correspondence and elapsed time in connection with handling of claims.  This practice facilitates prompt replacement of goods and contributes to generally improve trading relations.
5. Rates will be competitive and the valuation clause can be customized to include the increase market value of the goods being imported or exported.
6. Canadian marine insurance professionals are knowledgeable about domestic and international conditions and can better advise Canadian firms.
7. Canadian insurers provide prompt service.
8. Insurance in Canadian funds avoids foreign currency problems such as devaluation and fluctuation.
9. Insurance is based on one’s loss experience, not someone else’s and will not attract higher limits.
10. “All Risks” insurance is available and easily understood from Canadian underwriters.
11. Canadian underwriters have agents in nearly every city in the world to assist in the event of a loss or claim of unacceptable condition.
12. One can deal directly with the insurer to settle claims promptly and equitably.
13. The capacity of the Canadian marine insurance market is sufficient to absorb any cargo risk offered.
14. Canadian underwriters are able to place unusual insurance covers and will be responsive to new conditions and ideas.
15. Canadian insurance brokers know the industry and can help clients design the coverage they need.

 Please contact one of our marine experts today to inquire how the Ogilvy Importers policy can protect you.

All of the above coverage can be found under the Importers & Exporters section.