Crombie Lockwood

Marine insurance

Whether you own or charter vessels or move cargo, the marine insurance experts at Crombie Lockwood can give you great advice and guide you to relevant marine insurance policies that give you the financial protection you need.

We provide:

• Marine cargo insurance
• Marine hull & liability insurance
• Marine carrier’s liability insurance.

Our marine insurance brokers will work with you and look at every aspect of your insurance risk to ensure you get the appropriate financial protection in the event your vessel or marine cargo is damaged or lost. This could be due to any risk factor from dock strikes to rogue waves, heavy seas, loss of refrigeration or even earthquakes damaging containers on land. 

Marine cargo insurance

Marine cargo insurance is the oldest form of insurance in the world. Over the years, potential issues have been clarified to a remarkable degree and marine cargo insurance provides well-proven cover.

While many claims are relatively straightforward from an insurance point of view, they can become complex when the rules and regulations of international conventions become involved or where the cause and/or timing of damage is unclear.

Often difficulty arises with pinpointing where responsibility passes between parties. We usually ask to review the terms of sale before the contract is signed, so we can assist with mitigating your risk even at this early stage. If this is not possible, we can at least make sure your marinecargo insurance is structured in such a way that it covers your risk under the agreed terms of sale.

You have the choice of:

• Marine open cover, to cover all shipments undertaken annually in New Zealand, worldwide or both.
• Individual policies taken for one-off or infrequent shipments.

Carrier’s liability insurance

Marine carrier’s liability is a complex area governed in New Zealand by Part 5, Subpart 1 of the Contract and Commercial Law Act 2017 which replaced the Carriage of Goods Act 1979 in September 2017.

Any individual or entity that is liable for loss or damage to goods under a contract to carry such goods is affected and could include:

• Freight forwarders
• Shipping companies receiving goods at the wharf
• Packers, consolidators, warehouse operators and stevedores
• Port companies
• Wharf marshalling providers.

 As with marine cargo insurance, the terms of the contract are important in assigning risk.

• Limited Carrier’s Risk is the most common contract type in New Zealand and applies by default unless specified otherwise. The contracting carrier is liable for loss or damage to the goods throughout the duration of the contract, regardless of who actually damages or loses the goods, but with a set, limited liability per unit of goods.
• Declared Value Risk is basically the same as limited carrier’s risk except that the package limitation may be negotiated between the parties.
• Declared Terms means the parties can freely negotiate a carriage contract.
• Owner’s Risk puts all the risk on the owner, except if damage or loss was intentionally caused by the carrier.

Our marine insurance experts at Crombie Lockwood will make sure that you as carrier get insurance cover for your liability under the contract.

Marine hull and liability insurance

Marine hull and liability insurance covers damage or loss to the vessel, including its machinery and equipment, as well as legal liability to any third party that arises from negligence related to the vessel’s operations or the actions of its masters or crew.

Vessel insurance usually requires the vessel to be valued and surveyed for an agreed value to be reached. Coverage is provided for accidental loss or damage to the vessel anywhere in the agreed navigational limits set by the policy. The experience of the skipper is an important factor in rating the insurance.

Liability (also known as “Protection & Indemnity”) can be underwritten as an extension to the hull insurance or as a stand-alone cover via open-market insurance or specialist P&I clubs. The limits selected for liability with vary based on vessel type, use and territorial limits. It should be sufficient to cover cargo liability, salvage or removal of wreck costs, pollution risk and specific crew/passenger related liabilities.

With our vast experience in marine hull and liability insurance, Crombie Lockwood can give you expert advice and guidance on getting the best marine insurance to cover your financial risks.

Ship Repairers Liability

This covers the legal liability Shiprepairers face for loss and damage occurring while a vessel or craft is in their care, custody or control.

It also applies when a vessel is being moved within the limits of the port where work is being done and while in transit to or from a specialist repairer or manufacturers’ premises.

As well as this; coverage includes loss of or damage to cargo, machinery, equipment and third party property, plus removal of wreck. Consequential loss of hire or loss of use of a watercraft as a direct consequence of property damage to the vessel is within the policy limits too.

Ship Builders Risk

Vessels under construction or conversion; cover is provided against all risks of physical loss or physical damage. Also provides cover for launching, sea trials & liabilities arising out of the build.

Marine insurance claims

When you have marine insurance through Crombie Lockwood, we’ll assist you at claim time too. Using our access to underwriters, we can see to the speedy resolution of your claim. Or if a legal issue arises, we can advise you and help secure expert legal representation for you.

Standard contract terms

FOB (Free on Board): The exporter (seller) arranges insurance up until goods are loaded onto the vessel. The importer (buyer) arranges insurance from the time the goods are loaded onto the vessel. 
C&F (Cost and Freight): The insurance responsibility passes as for FOB, but one insurer usually covers the goods from the moment it leaves the supplier’s warehouse.
CIF (Cost, Insurance and Freight): The exporter (seller) arranges insurance from the time the cargo leaves the originating warehouse all the way to the destination warehouse.
Ex warehouse: The importer (buyer) arranges insurance from the time the cargo leaves the originating warehouse.

Commercial Property insurance services

Our service encompasses all areas of property insurance. Beyond advice and effective cover, we can support you with setting premium allocations, premium financing and even premium collection.

Our property insurance clients appreciate the value we add in the management of claims. Crombie Lockwood has developed efficient claims management systems that speed up resolution and balances the needs of all parties, including tenants.

Business interruption

When you suffer a business interruption, the financial loss can be more devastating than the physical loss.

Any business or property owner generating income from physical assets still has financial obligations that continue, even if an interruption to your business has a negative impact on your turnover.

Crombie Lockwood can provide you with Business Interruption insurance (or business continuity, as it is also known) to ensure that you minimise the financial impact where an interruption to your normal business operations occurs following a physical loss to your business assets. 

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