Request feu' open Covev
Glaston Potteries have built up a regular trade with customers in North and South America.They now email Worldwide
Insurance asking them 6„..- David Adair for open cover insurance
for their shipments.
Dear Mr Adair
As you know, we have been insuring individual shipments of our chinaware with you for some time and have now established a firm customer base in both North and South America.
We will continue to be making regular shipments, and wondered if you could arrange open cover for £200,000 against all risks to insure consignments ex-UK to North and South
American eastern seaboard ports?
I look forward to hearing from you.
Elaine Goodman
Export Department
GLASTON POTTERIES Ltd
Clayfield, Burnley BB10 1RQ
Tel: +44 (0)1282 46125
Fax: +44 (0)1282 63182
Email: e.goodman@glaston.co.uk
1 Why does Glaston Potteries want the policy changed?
2 What are the destinations for Glaston Potteries' consignments?
3 Do Glaston Potteries want a policy that insures them against any eventuality, or only specific things?
Points to remember
1 Insurance is designed to cover a business or individual against risks such as loss,
damage, or injury. Numerous types of policy are available to offer cover against various eventualities. The client has to decide which hazards apply.
2 Indemnification is the cover which allows compensation because of loss or damage, and is calculated on the market value or depreciation value of goods, not their original value. To be insured, a client completes a proposal form, and the
12 premium is then assessed and quoted (in the UK, in pence per cent). On acceptance, the client is issued with a cover note, which gives cover until the policy is ready.
3 Marine insurance is governed by Institute Cargo Clauses (or Lloyd's Own Clauses if the policy is issued by Lloyd's). Shippers are offered a variety of policies to cover shipments. However, most exporters ship under an all-risks valued policy, which covers them against most eventualities and allows them compensation for loss or damage, plus io%.
4 Open cover policies are used when exporters make regular shipments. Each shipment is declared and the insurance company covers it under the agreement.