What Does War Insurance Covered?
War Risk Insurance has become an indispensable safeguard for international shipping and cargo transportation businesses in the ever-evolving global trade landscape.
Unlike standard marine insurance, which typically excludes coverage for losses arising from war-related events, War Risk Insurance offers specialised protection against such perils.
Key Coverage Areas:
1. Physical Damage to Cargo
Protection against loss or damage to goods in transit due to war-related events such as missile attacks, piracy, or sabotage.
2. Ship Damage
Coverage for vessels damaged by acts of war, including mines, torpedoes, or other hostile actions.
3. Hijacking and Seizure
Protection against the unlawful capture or detention of ships and their cargo during periods of conflict.
4. War Loss of Hire
Compensation for loss of income resulting from a vessel being detained due to war-related incidents.
5. Political Violence
Coverage for damages arising from civil war, rebellion, or other forms of political unrest
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The Importance of War Risk Insurance
The necessity of War Risk Insurance has become increasingly evident in recent years. For instance, in December 2023, the European Bank for Reconstruction and Development (EBRD) introduced a €110 million guarantee to revitalise war risk reinsurance for inland transportation in Ukraine.
This initiative aimed to cover over €1 billion worth of goods and vehicles in transit annually amidst the ongoing conflict with Russia.
The escalating military conflict in the Middle East has also increased insurance premiums for freight forwarders and shipping companies. In the Red Sea region itself, due to heightened risks, insurance premiums have risen from around 0.5% to approximately 1% of a ship’s value.
Why Choose Us?
We at Azure Risk combine deep industry expertise with a commitment to understanding your business. Partner with us to protect your operations and reputation with a policy that evolves alongside your company’s ambitions.
Get in touch today to learn how our Freight Forwarders Liability Insurance can safeguard your business, your cargo, and your peace of mind.
Why Choose Azure Risk?
At Azure Risk, we understand the complexities and challenges associated with international shipping in today’s volatile geopolitical climate.
Our team of experts offers tailored War Risk Insurance solutions designed to meet your business’s unique needs. Whether you are a cargo business, shipper, or freight forwarder, we provide comprehensive coverage to protect your assets and guarantee the continuity of your operations.
Our Commitment to You:
- Expert Guidance: Our experienced brokers offer personalised advice to help you navigate the intricacies of War Risk Insurance.
- Tailored Solutions: We work closely with you to develop insurance packages that align with your business requirements.
- Global Reach: With a deep understanding of international trade routes and geopolitical risks, we provide coverage that spans across borders.
- Trusted Partnerships: We collaborate with leading insurers and reinsurers to offer reliable and robust coverage options.
Protect Your Business Today
Do not let unforeseen events jeopardise your operations. Contact Azure Risk today to learn more about our War Risk Insurance offerings and how we can help safeguard your business against global trade uncertainties.
