RiskEtrade is managed by: Austbrokers Hiller Marine Pty Ltd. | ABN: 88 611 606 029
Level 14, 44 Market Street, Sydney NSW 2000 | PO Box Q1402, QVB NSW 1230
Corporate Authorised Representative of Austbrokers Sydney Pty Ltd. | AFSR No. 001241503
ABN 14 061 968 090 | AFSL No. 244244
Incoterms - risk & insurance guide
Unlike other forms of insurance, cargo insurance can be assigned from one party to another. Certain Incoterms terms of sale specify when a seller is obligated to take out insurance on behalf of the buyer. When this occurs, the seller insures the cargo & the insurance policy is effectively transferred to the buyer. Where Incoterms terms of sale do not specify that a seller is required to arrange insurance then the buyer needs to determine if they should arrange insurance to protect their own interests.
On local domestic sales of goods, transfer of ownership & transfer of risk usually take place simultaneously. In contrast on international trade transactions, risk transfer does not necessarily correspond with transfer of ownership but usually takes place in accordance with the details of the terms of sale. The different Incoterms terms of sale specify at which point across the supply chain risk transfers from seller to buyer occurs. This has important insurance implications.
Members' supply chain risk helpdesk
Members of RiskEtrade are entitled to submit supply chain risk management & loss related questions to the RiskEtrade Helpdesk. These questions must relate to their own situation or circumstances when importing or exporting cargo. The RiskEtrade panel of risk advisers will look to respond to such questions by providing generic advice based on the information provided or directing the Member to specialists in the various fields that the questions relate to.
To assess the details of the Member’s particular circumstances or review any relevant documentation or correspondence, RiskEtrade is able to introduce Members to RiskEtrade panel service providers or other external parties who may be able to offer expert advice subject to a consultative fee to be agreed by both parties.
RiskEtrade Membership is available to policyholders of the Austbrokers Hiller Marine Supply Chain Risk Cover, a unique insurance program exclusively arranged by Austbrokers Hiller Marine, a specialist marine & international trade risk management & insurance broking company.
Key supply chain risk exposures
Supply chain risk exposures are varied & numerous; they can take various forms, occur at different times & at different places, have profound or little affect on businesses, be obvious or not so readily identified, be easily or not so easily risk managed, insured, uninsured or simply uninsurable.
Many types of risk pose a potential threat to a company; they can negatively impact its assets, cash flow, profits, the goodwill of suppliers & customers, the reputation of the business & even its ongoing existence.
In a contemporary business environment involving international trade & extended supply chains, most companies know that identifying & understanding risk exposures is very important.
Various types of insurance cover are available to importers & exporters who seek to mitigate the effect of risk exposures. An increasing number of companies appreciate that other forms of risk transfer options exist & that uninsured risks can be more dangerous than insured risks.
Understanding what risks aren’t covered by insurance, & properly managing those risks, is a critical step in the risk management process.