Those who frequented the Lloyd’s Coffee House would be astounded to see what marine insurance has turned into. Advances in technology have seen it transcend to include all form of transit of cargo to the extent that I am increasingly dealing with many claims for cargo that has neither been on board a ship or at a port.
If stock is not being transported, but is at its final destination, or a warehouse ready for delivery to the final customer, can this, and should this, fall under a marine policy? What if an insured also has stock covered under its property policy: where is the point of crossover and why does it matter?
Aside from the fact that the insurance placement may be different, the valuation of the stock may differ. For example, under a property policy, stock valuation is generally linked to the actual value, such as selling price or replacement cost, whereas a marine policy may ‘estimate’ the value using a set formula.
So, if an insured has two similar losses, which may be dealt with under different policies, is there a potential for an insured client to expect similar coverage and valuation of that stock and will this lead to a further change to the evolution of marine insurance?