How Can Insurance Brokers Help Beginner Exporters Handle Shipping Claims?

The surge in enthusiasm among aspiring exporters to explore global markets is a welcome development for the Indonesian economy. However, behind this ambition lies the challenge of international logistics and complex export risks. Shipping goods abroad is not only vulnerable to physical damage due to extreme weather or loss at port, but also to significant legal threats, such as General Average. For aspiring exporters, a single mishandled claim can mean total financial loss, reputational damage, and even the end of their business before it can truly establish itself. Understanding the marine cargo insurance claims process is a critical step that often separates businesses that survive from those that fail.

This article will thoroughly examine why shipping claims are a scourge for novice exporters and how insurance brokers act as advocates and saviors during this critical phase. We’ll explore documentation challenges, negotiations with loss adjusters, and strategic solutions for protecting your assets. L&G Insurance Broker, a specialist in logistics and marine cargo insurance located in South Tangerang, is ready to be your reliable partner. We understand that amidst the risks of global shipping, exporters and importers need certainty, not promises. Therefore, don’t let unmanaged risks derail your export business; ensure you receive professional guidance. Call L&G Insurance Broker now in 08118507773 for free consultation before any risk occurs.

The Real Threat: Claim Complexity for Beginner Exporters

1. Failure to Understand the Police (Under Insurance)

One of the biggest financial risks facing novice exporters is a failure to understand marine cargo insurance policies. Many fall into the trap of using ICC Clause C (the most basic coverage, covering only major disasters) for high-value and sensitive cargo (which should be covered by ICC Clause A, or All Risks). As a result, when general damage (for example, wet goods due to a leaking container) occurs, claims are rejected. Furthermore, incorrectly calculating the cargo value (underinsurance), i.e., failing to include freight and potential profit (10% of the CIF Value), results in never fully compensated. Without the guidance of an insurance broker, novice exporters are vulnerable to falling into a potentially fatal situation of underinsurance.

2. Documentation Delays and Omissions

The freight claims process relies heavily on the speed and completeness of documentation. Novice exporters often neglect or delay reporting losses (usually within 3×24 hours). When an incident occurs, they focus on evacuating or repairing the goods, forgetting about mandatory documentation. Documents that must be immediately secured include: Surveyor Reports, original Bills of Lading, Packing Lists, and detailed photos of the damage. This negligence creates significant loopholes for insurance companies to deny claims or delay them for months, hampering the logistics company’s cash flow. Managing this risk requires in-depth logistics experience.

3. Dealing with Surveyors and Adjusters

Following an incident, the insurance company will appoint a surveyor or loss adjuster to assess the cause and extent of the damage. It’s important to note that the surveyor is appointed by the insurer. Beginner exporters with limited experience often lose in technical discussions, especially when determining whether the damage was caused by a risk covered by the policy or an inherent defect in the goods. This situation increases the risk of protracted disputes, which are particularly detrimental for new exporters. The role of an insurance broker is to act as a representative of logistics and insurance experts, ensuring fair claims assessment.

The Role of Insurance Brokers as Claims Advocates

A. Bridging the Policy Language Gap

One of the primary roles of an insurance broker is to bridge the gap between the complex legal language of marine cargo insurance and the understanding of novice exporters. Insurance brokers translate legal and technical language into understandable language for clients. More importantly, they ensure that the insurance company’s interpretation of the policy aligns with the client’s rights. L&G Insurance Brokers educate novice exporters on commonly misunderstood insurance clauses, such as warranties, exclusions, and the differences between total and partial loss risks.

B. Technical Assistance and Documentation

Insurance brokers don’t wait until claims are settled; they assist novice exporters immediately after the incident:

• Quick Action: Directing clients to immediately take risk mitigation steps to prevent losses from spreading.
• Evidence Gathering: L&G Insurance Brokers assist start-up exporters in compiling a list of documents to be secured and arranging an independent Surveyor if required.
• Chronology Preparation: Helps to prepare a strong chronology of shipping claims, complete with legally relevant logistics and shipping evidence, avoiding the risk of rejection.

C. Claim Negotiation and Mediation

This is the greatest added value of an insurance broker. Brokers act as primary negotiators, working directly with loss adjusters to secure optimal compensation for exporters or importers. L&G Insurance Brokers’ negotiation expertise ensures prompt claims settlement and minimizes unreasonable deductibles. They expedite the claims process, ensuring that novice exporters receive immediate compensation and allow logistics to continue without financial risk.

D. Policy Audit and Risk Prevention

Before a claim occurs, insurance brokers ensure that novice exporters use tailored marine cargo insurance tailored to the risks of their shipments. Brokers conduct regular policy audits, adjusting coverage when shipping routes change or new cargo types arise. These loss prevention efforts help exporters identify and mitigate risks before losses occur.

L&G Insurance Broker’s Strategy to Save Exporters

A. End to End Service from South Tangerang

L&G Insurance Broker is strategically located in South Tangerang (close to the national logistics center). We provide end-to-end marine cargo insurance services for exporters and importers throughout Indonesia. Our focus is on speed, legality, and transparent shipping claims solutions, from insurance certificate issuance to compensation disbursement.

B. Ensuring General Average and Third Party Liability Guarantees

One of the biggest risks in shipping is General Average. L&G Insurance Broker ensures that clients’ cargo insurance covers this risk. Our brokers can quickly issue Letters of Guarantee (LG), preventing novice exporters from having to provide large amounts of cash quickly to release cargo at a foreign port. Furthermore, L&G also provides Third Party Liability (TPL) coverage if a client’s shipment causes damage to the logistics company’s property or that of another party.

C. Damage Analysis vs. Inherent Vice

Brokers help novice exporters argue technically with insurance companies about the cause of damage. L&G ensures that insurance companies don’t reject claims for invalid reasons, such as alleging damage was caused by an inherent defect in the goods when it actually occurred due to a shipping risk covered by the policy. This determination is crucial in shipping claims.

D. The Role of Loss Prevention in Shipping and Logistics

L&G Insurance Broker provides loss prevention advice to novice exporters, ranging from guidance on packing according to marine cargo insurance standards, selecting a credible freight forwarder, and understanding seasonal risks in specific logistics routes. These preventative measures significantly reduce the frequency of losses in international shipments.

Conclusion 

Shipping claims are the most challenging phase for novice exporters and importers due to the complexity of marine cargo insurance and high logistical risks. Many exporters lose capital and reputation due to mishandled claims. An insurance broker is essential for securing financial risk and protecting company assets, acting as your advocate in dealing with insurance companies. Working with a licensed insurance broker in South Tangerang offers the advantage of quick access and local expertise that understands Indonesian export risks.

L&G Insurance Broker offers professional solutions for novice exporters and importers. We ensure your marine cargo insurance is valid, comprehensive, and easy to claim. We protect the cash flow of your export and import business by resolving freight claims quickly and transparently. Don’t let administrative errors or a lack of policy understanding jeopardize your chances in the global market.

Protect your export and import business today. L&G Insurance Broker is ready to be your strategic partner, ensuring the safety of your cargo at every stage of international shipping and logistics. Therefore, don’t let unmanaged risks derail your export business; ensure you receive professional guidance. Contact L&G Insurance Broker now at 08118507773 for free consultation before any risk occurs. Get the best marine cargo insurance solutions in South Tangerang and throughout Indonesia.