REI Mar-Apr 2012 - Renewable Energy Installer

Knowledge: Insurance
Overboard, underinsured…
What happens when the panels you ordered don’t turn up? Mark Ellis, Sturdy
Edwards (Insurance Broker), outlines who’s responsible for insuring goods at
different stages of their journey
he order has been placed, the
T
survey completed and you are
on site for the first day of the
installation at your customer.
But there is a problem. The panels from
your supplier haven’t arrived…
There could be a number of reasons
why – maybe the lorry transporting them has
caught fire or been involved in an accident on
the motorway. Perhaps they have been stolen,
or the warehouse people at the suppliers have
dropped them. But you are insured… right?
Cargo Insurance (also known as Goods
in Transit or Marine Sendings) will protect
an owner of goods in the event of an insured
event. It is always prudent for owners to
insure their own goods, rather than rely on
the cover afforded by a haulier or supplier’s
contract of carriage.
The reasons for this is that goods
owners cannot depend on the conditions
of carriage to adequately compensate them
for their loss, as there may be limits on the
haulier or carriers liability, or even exclude it
in its entirety! Unfortunately for many, these
conditions are read only AFTER the event, and
can often lead to disappointment.
Anecdotally, it has been known for the
supplier of PV solar panels to replace “at their
cost”, lost or stolen goods. However, this is
likely as a result of a commercial decision for a
valued customer as opposed to a contractual
88 | www.renewableenergyinstaller.co.uk
obligation, and should the loss be significant,
the result may be different second time
around.
Far better then to take matters into your
own hands, and insure in your own name.
Cargo Insurance will protect you against
a range of perils which goods face when
travelling around the world, including within
the UK.
With regard to the renewable energy
sector specifically, Cargo Insurance will be
required by anyone importing stock from
abroad. This will cover transport by air, sea,
rail and road within the designated territorial
limits (for example, Europe only, or Worldwide).
A quick guide to who is responsible for insuring stock:
Terms of Sale When You (the Importer/Installer) Will be Liable
Ex Works (EXW) From factory door of seller
Free Along Side (FAS) From arrival at foreign dock
Free on Board (FOB) From loading onto ship
Cost and Freight (C&F) From loading onto ship
Cost, Insurance and Freight ( CIF) Never
Carriage and Insurance Paid (CIP) From unloading in UK
There are many Insurers offering this
cover, and the premium is often much less
than you think. If you import stock, or are
responsible for it whilst in transit within the
UK, speak to your Insurance Adviser, who will
be able to obtain a quote on your behalf.
Even with “Cost, Insurance and Freight”,
it may be worth considering insuring
yourselves if your imports are high, as cost of
insurance arranged by you is likely to be much
more competitive.
The policy may also not be arranged
within the UK, and therefore lead to protracted
correspondence in a foreign language in the
event of a claim.