Despite appearing unrelated at first glance, these events share a common thread - the loss of goods due to politically or economically motivated actions.
The missile attacks in the Red Sea were politically driven, aimed at disrupting vital trade routes in support of Palestine. Similarly, the farmers' protests were economically motivated, seeking to block subsidized imports of agricultural products to protect their own markets. Despite the differing motives, both incidents resulted in substantial losses of goods.
Transport insurance typically excludes coverage for politically motivated risks, such as strikes, civil commotion, or acts of terrorism. This means that damages resulting from events like the Red Sea attacks or the farmers' protests are often not covered under standard policies.
However, there is a solution for businesses involved in the carriage of goods. By insuring under separate clauses, known as Institute Cargo Clauses (Cargo), these risks can be covered. These clauses explicitly insure against acts of strikers, civil commotion, terrorism, and other politically motivated actions.
The clauses thus insure both the Red Sea attacks described above (persons acting for political motives) and the farmers' protests (the actions of strikers).
Colonnade Insurance SA, one of the main marine insurers in the Czech Republic, offers coverage for these risks as standard, often at no extra cost to existing policies. Given the unpredictable global geopolitical situation, Colonnade's underwriters recommend that businesses insure these risks to ensure comprehensive protection. Insuring these risks extends coverage to all types of transport and even includes intermediate storage during the insured transport.
In conclusion, businesses involved in cargo transportation, whether exporters, importers, or freight forwarding companies, should consider the importance of comprehensive insurance coverage, especially in light of politically or economically motivated risks. Colonnade Insurance stands ready to provide the necessary coverage and expertise to safeguard against such unpredictable events.