Shipping Insurance Update: Coverage Extended

Customer Case: Shipping Insurance Update – Coverage Extended for All Used Excavator Exports

In March 2026, Rich Reach successfully renegotiated our marine cargo insurance policy, extending coverage to include risks that are especially relevant to used machinery shipments to Africa, the Middle East, and Southeast Asia. This case study explains what has changed, why it matters, and how one of our clients already benefited from the new coverage.

What Has Changed – Insurance Coverage Now Includes

Previously, our standard “All Risks” marine policy covered fire, sinking, collision, grounding, and general average – but excluded several common risks. Effective March 1, 2026, our extended policy now covers:

✅ Theft, pilferage, and non‑delivery – full protection if cargo is stolen from the port or in transit.
✅ War, strikes, riots, and civil commotion (SRCC) – critical for shipments to regions with political instability or port strikes. The December 2025 Durban strike would have been covered under this extension.
✅ Port congestion and deviation – if a vessel is rerouted or delayed due to congestion, extra costs (e.g., demurrage, storage) are partially covered.
✅ Breakage, scratching, and oil leakage – specifically for used machinery, not just new goods.
✅ Fresh water and rainwater damage – important for open‑top or flat rack containers.
✅ Transshipment and overland transit – coverage continues when cargo moves from ship to train or truck (including rail to Uganda as in our pilot).

Why We Extended Coverage – Real Client Need

In February 2026, a Nigerian client reported that a shipment of 3 excavators (from another supplier, not Rich Reach) had been partially looted at Apapa port while waiting for clearance. The insurance policy did not cover theft because the cargo was already discharged from the vessel. The client lost over USD 20,000. That incident prompted us to review our own policy. We found that many standard marine policies exclude “theft from port terminal” and “strikes.” We immediately worked with our insurance broker to add these coverages at a marginal extra cost (which we absorbed – the premium to you remains unchanged).

Real Case: Successful Claim Under New Policy – Container Damage in Mombasa

Shipment: April 2026 – one used Caterpillar 320D excavator in a 40ft flat rack container to Mombasa, Kenya.
Incident: During offloading at the port, a crane cable snapped, causing the container to drop 2 meters. The excavator’s cab roof and hydraulic hoses were damaged. Estimated repair cost: USD 4,800.
Old policy: Would have covered damage only if the vessel was at fault (marine peril). Port stevedore error is often excluded or requires litigation against the port operator (time‑consuming).
New policy (extended): Covers “damage during loading or discharging by any cause” including port equipment failure. We filed a claim within 48 hours with our insurer (PICC).
Result: Claim approved in 14 days. The client received USD 4,800 directly (less a USD 500 deductible, paid by us as a goodwill gesture). The client was able to repair the machine locally within 1 week – no long delay.
Client feedback: “I didn't even know Rich Reach offered insurance. When the accident happened, I thought I would have to pay out of pocket. Your team handled everything. This is why I buy from Rich Reach.”

What Is Covered – Detailed List for Used Excavator Shipments

How to Claim – Simple Process

We want claims to be easy. Here is the 4‑step process we follow for any insured Rich Reach shipment:

1️⃣ Notify us immediately – Within 48 hours of discovering damage or loss. Email photos, video, and describe the incident. We will open a claim with the insurer.
2️⃣ Obtain a survey report – We will arrange a local surveyor (or accept your own mechanic’s report) to assess the damage and estimate repair cost.
3️⃣ Submit documents – Police report (for theft), repair quotes, original Bill of Lading, commercial invoice, and packing list. We help you compile these.
4️⃣ Claim settlement – Insurer pays directly to you (or reimburses us, and we pay you) within 20‑30 days. For small claims (< USD 5,000), we can advance payment from our own funds to speed up your repair.

Cost to You – No Change, No Hidden Fees

The extended coverage costs us an additional 0.12% of CIF value. We have decided not to pass this cost to customers. The insurance premium included in our CIF quotes remains the same. For FOB shipments, you can choose to purchase insurance through us at cost (0.35% of CIF – industry low). Either way, you get better protection at no extra charge.

What Is NOT Covered (Transparency)

Even with the extended policy, some exclusions remain:

❌ Inherent vice – pre‑existing mechanical failure (e.g., engine break down due to worn parts). That is why we strongly recommend pre‑shipment inspection and on‑site testing.
❌ Insufficient packing / lashing – if the container is not properly secured and damage results, the claim may be denied. We train our loading team to exceed industry standards.
❌ Customs confiscation or import permit issues – insurance does not cover illegal imports or failure to obtain local licenses.
❌ Currency fluctuation or loss of market value – only physical loss/damage.

Client Testimonials on Our Insurance Support

Client E (Kenya – Mombasa damage case above): “I was worried the claim would be rejected because the damage happened at the port, not at sea. Rich Reach told us about the new coverage and guided us through every step. Money arrived in 3 weeks.”
Client F (Tanzania – minor hydraulic leak after rough handling): “The claim was only USD 800. I thought it was not worth the paperwork. Rich Reach processed it for us – we did not have to do anything. The money was deducted from our next order. Very convenient.”

Why This Matters for Your Next Order

Shipping used excavators across oceans always carries some risk. At Rich Reach, we mitigate risk through careful packing, strong shipping line choice, and now, comprehensive insurance that covers the unexpected. When you receive a CIF quote from us, you know you are protected beyond the minimum required by law.

Ask us for a copy of the full insurance certificate and policy wording before you ship. We are happy to share.

Rich Reach – Protecting Your Investment

We are not just a seller of used machinery. We are a partner that stands behind every machine from loading to unloading – and even when things go wrong. The extended insurance coverage is another way we differentiate from other exporters who offer minimal “free on board” risk transfer.

Contact us to discuss your next order and we will provide a CIF quote including full extended coverage.

Contact Rich Reach

Email: sales-01@richreach.cn  |  amy@richreach.cn
Phone / WhatsApp:
Frida: +86 18110289118
Amy: +86 18297527921

Our Location:
Approx. 150m east of Baogong Ave & Dazhong Rd intersection, Longgang Comprehensive Economic Development Zone, Yaohui District, Hefei, Anhui (about 250m east of Poly Luolan Spring), China

Rich Reach – More than machines: peace of mind.