Embed Size (px)
Citation preview
• COMMODITIES – ENHANCED PROTECTION (FOR COCOA, COFFEE, COTTON, TEA, SUGAR ETC.)
Fills the gap left by the Commodity Trades Clauses that normally apply to shipments of raw materials such as cocoa, coff ee, cotton, tea and sugar – clauses which do not automatically provide cover against ordinary leakage, ordinary loss in weight or volume, inherent vice or delay.
• ‘DUTY PAID’ STAMPS (FOR TOBACCO AND DRINK PRODUCTS SUBjECT TO ExCISE DUTY)
Where physical, printed ‘Excise Duty Paid’ Tax, Revenue or Banderoles stamps are lost whilst in your care, custody or control you would have an excise duty liability up to the full value of the stamps.
• TOBACCO – EARLY ATTACHMENT OF COvER (FOR TOBACCO PRODUCTS)
For leaf and cut tobacco, cover may be required from the fall of the hammer at the time of purchase in country of origin and continue until arrival at fi nal destination.
• EARLY ATTACHMENT OF COvER (FOR FLOWERS, FOODS, COMMODITIES)
For fl owers, food produce or similar commodities, cover may be required from the time of picking or cutting in country of origin, continuing through interim cold storage until arrival at fi nal destination.
• INTERvENTION COvER (FOR FOOD PRODUCTS) Provides cover for storage of
Intervention foodstuff s.
• GUARANTEED OUTTURN (FOR FOOD OILS, SEEDS, FATS)
This is an extension of the cargo cover provided by the Institute FOSFA Trades Clauses for bulk shipments of oils, seeds and fats, and provides protection for so-called ‘paper losses’ which are in excess of normal trade losses and where there is no apparent or identifi able cause of loss. This cover is available as an extension under a WOLF Policy.
• TRADE DISRUPTION INSURANCE (TDI) (FOR ALL FOOD AND DRINK PRODUCTS)
TDI protects against disruption in the supply chain caused by political events, and is available as an extension under a WOLF Policy.
• UNREST IN THE MIDDLE EAST AND NORTH AFRICA
The current political and social unrest in the Middle East and North Africa is likely to continue for some time, and whilst not automatically covered by WOLF we can advise on coverage that may be available for food and drink related risks, such as War Risks On Land, Political Risks, Static Terrorism and Civil War.
CONTACT USTo arrange a free, non-committal quotation or a review of your existing Marine Transit Insurance arrangements, contact:
Michael SmithExecutive Director, Marine Transit Specialist, Food and DrinkWillis International Trade and LogisticsWillis Group, The Willis Building, 51 Lime Street, London EC3M 7DQDirect: +44 (0)1473 223679, Mobile: +44 (0)7710 156 897, Email: [email protected]
Simon BridgwaterNational Practice Leader, Food and DrinkRisk Solutions, Willis UK RetailWillis Limited, The Willis Building, 51 Lime Street, London, EC3M 7DQDirect: +44 (0)116 265 1012, Mobile: +44 (0)7703 106782, Email: [email protected]
This publication is a guide to the cover provided by the WOLF Online Marine Cargo insurance policy. It is intended to provide a high level illustration of some of the key features of the wording and does not represent the full policy detail. Please refer to the policy document for full details of cover including complete terms, conditions and exclusions. A copy of the policy document is available on request and will be automatically supplied to with any quotation.
FP1251/10096/02/12
Willis Limited, Registered number: 181116 England and Wales.Registered address: 51 Lime Street, London, EC3M 7DQ.A Lloyd’s Broker. Authorised and regulated by the Financial Services Authority for its general insurance mediation activities only.
Willis Limited
The Willis Building51 Lime StreetLondon, EC3M 7DQUnited KingdomTel: +44 (0)20 3124 6000
www.willis.com
MArIne TrAnSIT InSurAnCeFOr THe FOOd And drInk SeCTOr
WHAT IS WOLF?WOLF is the Willis online facility for Marine Cargo, Inland Transit and Stock Throughput Insurance. The facility caters for both local and global transit-related risks and has been pioneered since 2008 by Willis Limited, one of the largest insurance brokers in the world.
In 2011, WOLF was nominated for the London Market Awards Technological Initiative of the Year Award.
WHAT WOLF CAN DO FOR YOUIf you are a manufacturer or trader, importer, exporter or supplier involved in the Food and Drink industry, you probably have a Cargo insurance policy in place. Your policy will provide some form of cover for physical loss or damage to your goods in transit – including third parties’ goods which you may be responsible for insuring – whether domestically or internationally, whether for imports of raw materials or exports of finished products, whether for goods shipped in bulk or shipped under ambient, chilled or frozen conditions.
However, if you do not have a WOLF Cargo policy you may be missing out on a ground-breaking wording which provides a level of cover previously unheard of in the cargo insurance market.
WOLF – 10 KEY BENEFITS FOR WILLIS FOOD AND DRINK CLIENTS1. One of the widest Cargo insurance covers
currently available in the U.K. market. 2. 100% placement with one of a panel of
five major insurers.3. Competitive pricing is generated by
competition between panel insurers. 4. Continued competitiveness of insurers
due to periodic performance reviews. 5. Cover is bound and policy documents are
provided at the press of a button.6. In-full premiums mean no declarations or
year-end figures are required.7. Fast-track, user-friendly claims management
and settlement procedures.8. Direct access to specialist claims advice and
expertise when required.9. User-friendly, e-mail based system. 10. Password access for clients to online
Certificates of Insurance, as required.
WHAT DIFFERENTIATES WOLF FROM OTHER FOOD AND DRINK CARGO INSURANCE POLICIES?In a word: Cover!
WOLF provides more comprehensive cover with fewer exclusions, fewer warranties and fewer deductibles than most existing Cargo insurance policies covering food and drink in transit.
IF YOUR CURRENT POLICY DOES NOT INCLUDE THE FOLLOWING COvER AS STANDARD THEN YOU ARE PROBABLY MISSING OUT ON vALUABLE INSURANCE PROTECTION:
• CONSEqUENTIAL/FINANCIAL LOSS COvER INCLUDED (CRITICAL FOR PERISHABLE FOODSTUFFS)
A Cargo insurance policy covers physical loss or damage to cargo; it does not generally cover Consequential/Financial loss. WOLF automatically provides Consequential/Financial cover up to GBP 250,000 any one claim (and in the annual aggregate) for:
– Loss or damage to the insured goods. – Delay in delivery due to the carrying
conveyance suffering an accident during transit. – Delay in delivery due to closure of a transport
route following a natural catastrophe (earthquakes and volcanic ash clouds included!).
– Delay in delivery caused by an act of Piracy – which includes piracy-related financial losses such as loss of market, cost of replacement, on-forwarding and repatriation costs.
• UNAUTHORISED OCCUPANTS (FOR ALL FOOD AND DRINK PRODUCTS)
Loss or damage can be caused by unauthorised occupancy of conveyance – often involving illegal immigrants. Cover for loss or damage to food and drink products, (including Total Loss) is included under WOLF where there are reasonable grounds to reject the entire consignment.
• PIRACY COvER INCLUDED (CRITICAL FOR PERISHABLE FOODSTUFFS)
Piracy is a real risk for shipments bound for Europe from Asia (and vice versa) transiting via the Gulf of Aden/Suez Canal. A typical act
of piracy could involve a ship and its cargo being detained for several months before being allowed to resume its voyage – following payment of a ransom. Whilst physical loss or damage to cargo arising from an act of piracy is generally covered under a Cargo policy, loss or damage arising as a result of (any) delay is excluded. WOLF however, provides as standard, cover for Consequential/Financial loss arising as a result of delay following an act of Piracy – up to GBP 250,000 any one claim (and in the annual aggregate).
• BRANDS CLAUSE FOR qUALITY CONTROL (FOR ALL BRANDED FOOD AND DRINK PRODUCTS)
This clause ensures that you retain control over your damaged, branded goods following a loss, thus permitting you to have your claim settled in full whilst remaining the sole judge as to whether damaged goods are merchantable or should be recycled or destroyed. This gives you total quality control and prevents insurers selling your damaged branded food and drink products as ‘seconds’ in salvage markets – possibly to the detriment of your brand name.
• CUSTOMISED CONDITIONS OF INSURANCE (FOR AMBIENT, CHILLED OR FROzEN FOODS)
For ambient, frozen or chilled foods, WOLF includes the appropriate Institute of London Underwriters Clauses – and their extensions. These Clauses ensure that cover is in place for loss of, deterioration of or damage to insured goods resulting not only from normal transit risks, but also from:
– Breakdown of refrigerating machinery. – Variations in temperature of
refrigerating machinery. – Inherent vice or nature of the subject matter. – Delay.
• REjECTION/REFUSAL ExPENSES INCLUDED (FOR MEAT AND OTHER FOOD PRODUCTS)
Many food and drink exporters are exposed to the risks of additional expenses following rejection or refusal of their goods by the governments of Countries of Import. These risks are not generally included in a Cargo insurance policy, and must be purchased separately – often at prohibitive premiums. WOLF includes cover for these expenses as standard, including – but not limited to: costs of freight, storage, testing and/or re-testing. (A limit of GBP 100,000 any one claim and in the aggregate applies).
• ExCISE DUTY LIABILITY (FOR WINES, SPIRITS, TOBACCO)
This can be quite onerous on wines, spirits and tobacco products and cover is automatically included under the WOLF Policy.
• MOULD, MILDEW, DETERIORATION OF PRODUCT (FOR ALL FOODSTUFFS)
For temperature-controlled goods, the WOLF policy automatically includes loss or damage arising from mould, mildew and deterioration of product.
• COMBINED CARGO/STOCK THROUGHPUT (IMPORTANT FOR PERISHABLE FOODSTUFFS)
WOLF easily facilitates the combination of a Cargo policy with an existing Stock policy – where the stock risks may be currently insured under a separate Property Insurance programme. A Cargo/Stock Throughput cover provides protection from the time the goods are first set in motion, and continues through all intermediate storage locations until they reach final destination – or until your responsibility for insurance ceases. This means cover is continuous throughout the distribution chain.
Whether you are importing, or trading in foodstuff commodities, or you are an exporter with complex trade patterns, the ability to insure food and drink stored en-route is a valuable resource, providing flexibility and time to make any necessary logistics arrangements.
Cover includes raw-materials, finished, unfinished or semi-finished goods whilst at third parties’ premises for manufacturing, branding, unpacking, repacking or consolidation, and a single combined WOLF Cargo/Stock policy may result in a lower overall premium.
THE FOLLOWING COvER IS ALSO PROvIDED AS STANDARD UNDER THE WOLF FOOD AND DRINK POLICY
• GBP 5,000,000 POLICY LIMIT ANY ONE CONvEYANCE – CAN BE ExTENDED AS REqUIRED
There is no requirement to report individual shipments or sendings below the policy limit.
• FIRST LOSS PROvISION Claims are settled on a First Loss basis up to the
policy limit; therefore the principles of Average and Underinsurance (which can reduce the amount of the claim payable) do not apply.
• PACKING ExTENSION Insurers accept clients’ customary methods
of packing as standard, and will not rely on general packing exclusions in the underlying Institute Cargo Clauses to deny claims.
• PROOF OF LOSS Claims are recoverable unless insurers can
prove to the contrary. This means the burden of proof rests with insurers, not with you.
• INTEREST-FREE LOAN FOR LOST GOODS Cargo failing for reasons unknown to arrive at
destination within six weeks of the expected time of arrival can be settled as a total loss – in the form of an interest free loan from insurers.
• FAST-TRACK SMALL CLAIMS SERvICE For claims under GBP 5,000 you need only
submit a simple claim form to insurers who are required to arrange settlement within two weeks. No surveys are required.
For claims between GBP 5,000 and GBP 10,000 you need only submit a simple claim form with minimum specified documents to insurers, who are required to arrange settlement within two weeks. No surveys are required.
• POLICY ISSUED ON OR BEFORE INCEPTION This means that you know exactly what cover
you are buying, and at what cost, on or before inception. No more long delays waiting for the policy document to arrive!
AddITIOnAL COver AgAInST nATurAL dISASTerS FOr FOOd And drInk PrOduCTSWOLF also provides automatic cover for loss or damage to food and drink products in transit caused by natural disasters – such as the recent earthquake and tsunami in Japan and Hurricane Katrina in the U.S.A. in 2005. However, most Cargo policies offer no cover for financial loss caused by natural disasters or natural phenomenon such as the eruption of Iceland’s Eyjafjallajökull volcano in 2010. With the closure of international airspace caused by ash clouds, a number of Willis clients saw their food and drink products delayed en route to final destination, suffering deterioration and necessitating re-routing in an effort to mitigate losses and maintain product supply.
The WOLF Policy provided unprecedented cover on all aspects of the resulting losses, namely: Product deterioration, Additional cost of Forwarding, Consequential loss, Debris removal and Prompt Partial Settlement whilst final
quantum was being calculated. The broad scope of cover under WOLF ensured that all elements of the financial loss claim arising from the volcanic eruptions were successfully dealt with, subject to cover limits.
WOLF PLUS – THE OPTIONAL EXTRAS
Every client’s insurance needs are different, and depending on your own particular requirements, the following cover extensions for Food and Drink products are available with a WOLF Policy:
• EC PAYMENTS/SUBSIDIES (FOR FOOD AND DRINK PRODUCTS)
Cover for liability and/or loss in respect of EC payments and/or subsidies arising from loss or damage to insured goods.
