How can you communicate insurance requirements to international partners?

2 Understand the terms

When you communicate with your international partner, you should be familiar with the common terms and concepts related to insurance in international trade. These include the Incoterms, which are standardized rules that define the responsibilities and obligations of the seller and the buyer regarding the delivery, risk transfer, and insurance of the goods. You should also know the difference between the various types of insurance policies available, such as marine cargo insurance, freight forwarder's liability insurance, trade credit insurance, and political risk insurance. You should also be aware of the exclusions, limitations, deductibles, and claims procedures of each policy.

3 Choose the right policy

Once you have identified your risks and understood the terms, you should choose the right insurance policy that suits your needs and expectations. You should compare different options from different providers and consider factors such as the scope, cost, duration, and reliability of the coverage. You should also check the local laws and regulations of the countries involved in your import/export operation, as they may have specific requirements or restrictions on insurance. You should also consult with your legal and financial advisors to ensure that you comply with the relevant rules and standards.

4 Negotiate the contract

After you have chosen the right insurance policy, you should negotiate the contract with your international partner and make sure that it reflects your insurance requirements and expectations. You should specify the Incoterm that defines the risk transfer and insurance responsibility between you and your partner. You should also clarify the details of the insurance policy, such as the insured value, the coverage period, the documents required, and the claims process. You should also include a clause that states the dispute resolution mechanism in case of any disagreement or conflict over the insurance matters.

5 Confirm the coverage

Before you ship or receive your goods, you should confirm the insurance coverage with your international partner and your insurance provider. You should obtain and verify the certificate of insurance or the policy document that proves that your goods are insured according to the contract. You should also check the validity and accuracy of the information and the terms of the insurance policy. You should also communicate with your partner and your provider about any changes or updates that may affect the insurance coverage, such as delays, damages, or deviations.

6 Handle the claims

In the unfortunate event that your goods suffer any loss or damage during the import/export process, you should handle the claims promptly and professionally. You should notify your international partner and your insurance provider as soon as possible and provide them with the necessary evidence and documentation to support your claim. You should also follow the claims procedure and the dispute resolution mechanism specified in the contract and the insurance policy. You should also cooperate with your partner and your provider to resolve the issue and recover your losses.