In recent years cargo losses worth more than one hundred million dollars have not been recovered under traditional cargo insurance policies due to critical exposures being excluded, warned Willis Group Holdings, the global risk adviser, insurance and reinsurance broker.
Heightened levels of political unrest and uncertainty have highlighted a significant gap in coverage for cargo risks around the world. That is because standard “all-risks” cargo insurance policies may not respond to losses arising from various types of violent unrest.
For example, traditional cargo insurance policies typically exclude certain losses, such as those arising from civil war, insurrection, rebellion and terrorism for goods in store. Meanwhile, political violence policies, which typically respond to these types of risk, usually exclude transit exposures and cover fixed assets rather than stock.
In response, Willis has launched a new insurance facility, called Undercover, to protect cargo in transit and in store against all types of political violence, terrorism and war risks.
Willis’s Undercover, which has received support from a panel of leading London Market insurers, wraps up the coverage provided by these different policies under a single facility, eliminating gaps in coverage and reducing premium costs by removing duplication of cover.
Source: Willis Group Holdings
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