Cargo Insurance is a business protection tool, not a cost – Insurer

The Chief Executive Officer of Serene Insurance Company Limited, Mercy Naa Korshie Buampong, has encouraged businesses to view marine cargo insurance as a vital safeguard for business operations rather than an unnecessary expense.

She said the relatively small amount paid as insurance premiums compared to the potential losses from damaged, destroyed or missing goods makes cargo insurance a worthwhile investment for importers.

Buampong made the comments during a media forum organised by the Ghana Ports and Harbours Authority (GPHA), where she highlighted the importance of protecting imported goods against unforeseen risks.

According to her, marine cargo insurance premiums usually account for only a fraction of the total value of imported goods but provide significant financial support when losses occur.

She explained that cargo insurance can cover the value of the goods as well as additional costs such as freight charges and some customs-related expenses.

She noted that importers are still required to pay customs duties even when goods arrive damaged, making insurance protection crucial in helping businesses recover financially.

Buampong said some importers who do not obtain local insurance still pay an insurance component during customs valuation but lose the opportunity to benefit from actual insurance coverage.

She added that local insurance companies operate under the supervision of the National Insurance Commission, giving policyholders a platform to seek assistance in cases of disputes.

The Serene Insurance CEO mentioned several risks associated with international trade, including ship accidents, fires, vessels running aground, water-related damage and general average claims, which can expose businesses to major financial setbacks.

She advised companies to spend a small portion of their investment on insurance protection for consignments that often represent significant financial commitments.

Buampong said increased public education on insurance has helped reduce misconceptions and build greater confidence in the sector.

She stressed that importers must provide accurate details about their cargo, including its value, destination and transportation arrangements, to ensure they receive appropriate coverage and avoid challenges during claims settlement.

She warned that deliberately declaring lower cargo values to reduce premiums could result in inadequate compensation when losses occur because insurers depend on accurate information to determine the right level of protection.

The insurance executive encouraged importers to disclose key details such as the type of goods being shipped, the point at which insurance coverage should begin and end, whether goods would undergo trans-shipment and whether inland transportation would continue after arrival at the port.

She explained that providing complete information allows insurers to properly evaluate risks across the entire supply chain.

According to Buampong, businesses can insure their goods from the supplier’s warehouse abroad to their own warehouse in Ghana, depending on the agreed trade terms.

She also outlined the various levels of marine cargo insurance, explaining that Clause A provides the broadest protection by covering all risks except those specifically excluded, while Clauses B and C offer narrower coverage.

She urged importers to consult insurance professionals before choosing policies to ensure they select the most suitable protection for their goods.

Buampong emphasised that proper disclosure of information helps businesses secure adequate insurance cover and reduces disagreements during the claims process.

Prince Antwi

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