商贸英语实用对话 Unit9:Insurance

（9）Insurance
◆ A Chinese exporter discusses insuring an order with an
American buyer.
◆ Exporter : Of course, we'll need to insure your shipment of baby coaches.
◆ Importer ： What is the primary purpose of insurance?
◆ Exporter ： It protects against damage or loss of goods during shipping.
◆ Importer ： A business acquaintance told me that you're an experienced exporter. Why don't you explain how goods are valued for insurance purposes? I suppose there's more than one factor that goes to make up insured valuation.
◆ Exporter ： Yes, the primary factor is the cost of the goods at the point of delivery. Then, too, it depends on whether goods are shipped F.O.B. or EX-factory1.
◆ Importer ： I'd like to hear something about those unfamiliar terms.
◆ Exporter ： F.O.B. means free on board. This means the seller is responsible for delivery of the goods to the carrier TM, and from there the buyer is responsible.EX-factory means from the point of origin. This means the buyer pays all shipping costs from the factory.
◆ Importer : How should we go about shipping the baby coaches?
◆ Exporter : Our firm uses a freight forwarder. As soon as the order is ready, my company issues an order to our freight handler. They prepare all the documents needed for shipping, including the certificate of insurance.
◆ Importer : I understand freight forwarders handle packing and insurance as well as the other documents needed for export.
◆ Exporter : Right.
◆ Importer : What sort of documents do you need to provide to the freight forwarder?
◆ Exporter : We must submit a commercial invoice which provides accurate information about the goods, their value, their quantity, and the names of the consignor and consignees.
◆ Importer : But it's the freight forwarder who chooses the insurance company?
◆ Exporter : Yes. They only deal with reputable firms, so you can be sure of dependable coverage.
◆ Importer :The insurance is protection against loss arising from damage?
◆ Exporter : Yes, we're usually covered for loss or damage. As soon as the insurance company gets the export declaration-- if they agree to insure -- they write a policy fixing the terms and the premium.
◆ Importer : And then the consignee pays the premium?
◆ Exporter : And the insurance company issues a receipt for the premium called a covering note. That secures the goods until the actual policy is written.
◆ Importer : So from that point on we're protected against loss or damage?
◆ Exporter : Some policies cover TLO, so in that case we're covered for total loss of goods only, not for partial loss or damage. But all this is always spelled out in advance.
◆ Importer : Well, thanks for the information.