Marine cargo policyholders should work with a knowledgeable broker to maximize their coverage and strengthen their hand in the event of a claim dispute, according to Joshua Gold, a New York-based partner at Anderson Kill P.C.

Mr. Gold spoke during a Monday session of the Risk & Insurance Management Society Inc.’s 2021 conference, which was held virtually.

Anachronistic policy language, lack of uniformity across coverage forms and shorter statutes of limitations are key issues that marine cargo policyholders have to navigate, Mr. Gold said.

One of the oldest marine cargo insuring clauses refers to “touching the adventures and perils which this company is content to bear and take upon itself, they are of the seas, fires, assailing thieves, jettisons, barratry of the master and the mariners, and all other like perils, losses and misfortunes that have, or shall come to the hurt, detriment or damage of the goods insured or any part thereof,” he said.

Even if this kind of language persists, marine cargo policyholders should insist that insuring forms have all risk language akin to what one would see in a commercial property policy, Mr. Gold said.

“Get into the details of what the fine print may mean. It’s good to work with your broker to get the most comprehensive language you can,” he said.

Other important insuring clauses to watch for are sue and labor coverage, demurrage coverage and fraudulent bills of lading. Policyholders should work with a seasoned broker to uncover variations in language that might narrow the scope of coverage, Mr. Gold said.

“Get the broadest version you can. Often it’s worth the additional premium money and legwork to comparison shop and find the best coverage form you can,” he said.

Many marine cargo insurance policies have a shortened statute of limitations, Mr. Gold said.

“Lots of insurance policies in the first party realm will try and limit the amount of time a policyholder has to start coverage litigation in the event there’s a dispute and the insurer refuses to pay the claim,” he said.

These time limitations can be much shorter than the six-year suit limitation clause under New York law, he said.

Under a marine insurance doctrine known as “uberrimae fidei” — the duty of utmost good faith — insurers will argue that the policyholder must disclose all information that may be material to their underwriting decision, but which wasn’t necessarily inquired about, Mr. Gold said.

“It’s an area where some insurers may take a very aggressive approach to an otherwise covered claim and try and rescind the insurance policy to avoid paying a claim,” he said.