Port Package Insurance

09 December 2021

Ports and Terminals sector operate within a challenging risk landscape. Just as Ships and Cargoes need to be covered by insurance, the entry and exit points for these: Ports and Terminals also need a very comprehensive insurance protection. Not only are there a huge amount of highly specialized equipments, machineries and civil infrastructures but also severe exposure to third party liabilities due to their operations.

Key Risks in Port Operations:

The key risks at a Port can be categorized under the following categories

  • Property Damage
  • Vessels and Floating Crafts
  • Business Interruption following Direct Physical Loss or Damage to Port assets OR Channel Blockage
  • Re-dredging Cost
  • Liability Risks to different parties involved like Ship Owners, Customers/Cargo owners, Authorities (Liabilities imposed by Law)
  • Terrorism

Coverages Under Port Package Policy

Material Damage Section:

  • Loss of or damage to cargo under the client’s care, custody and control
  • Physical loss or damage to owned or leased handling or carrying equipment such as cranes and forklifts equipment
  • Port or terminal property

The risk coverage is on All Risk basis including but not limited to Fire and Allied Perils, Act of God Perils, Burglary, Electrical and Mechanical Breakdown, Stand Alone Terrorism (separately)

Business Interruption Section:

  • Business interruption due damage under the material damage section
  • Includes coverage for blockage of ports and channels

Third Party Liability Section:
  • Third-party liability for property damage, injury, death and or disease
  • Liability arising out of wreck removal, wrongful delivery of cargo, stevedoring
  • Fines and duties, cross liability
  • Professional indemnity for negligent acts or omissions of staff including breach of warranty
  • Liability to authorities including regulatory breaches

Benefits of Port Package Insurance:
  • Unfortunately, some of the Ports are still covered under traditional property insurance policies. These policies have limitations in terms on coverage for marine perils and may be huge disadvantage for the insurance in case of big losses

Our dedicated team in Unison is familiar with all and any challenges that might crop up along with the way. With an ideal balance of experience, Technical Knowledge and Transactional Skills, we provide a wide spectrum of services that remain unmatched by our competitors