Even if the consignee of the consignment is covered by insurance (refer to the insured is the case of consignee) Why is there a risk or a shipper or should buy an insurance policy to protect the goods across the ship before the risk? We look at two cases:
    
   A particular year, China's Fujian Province, an import and export company, signed a contract with a British Ltd., agreed to by the seller to provide $ 68,000 worth of goods, FOB Xiamen, 15 days after receipt of the letter of credit delivery. Call the buyer the seller must buy the insurance of its behalf to the invoice value plus 10% of the insured to London all the risk. The seller receives the buyer to open letters of credit and send its ships to the notice, required by the buyer on behalf of insurance companies to A, the insured person's insurance is the buyer, the insurance policy set forth in the departure location for the supplier companies Longyan City of London for the British port of destination.
   However, three days after the goods shipped to Xiamen, Longyan City, since the way, as a result of the accident, resulting in 10% of the damaged goods. Later, the seller to insurance policies contain "warehouse to warehouse" clause on the grounds, to claim the insurance company A, but was refused. Also requests the buyer to the seller after the buyer's behalf with the insurance claim insurance company A one-way, the same was rejected.

Case Study:
In the international cargo transportation insurance, the insurance company liable for the claimant, must meet the following conditions:
1) between the insurance company and the claimant must have a legally valid contractual relationship, that the claimant must be a legitimate insurance policy holders;
2) exercise the right to claim the insurance company who must have an insurable interest;
3) the insured goods during transport, losses must be within the scope of the insurance company underwriting the risk caused.

The case, due to the turnover of FOB Xiamen, FOB port of shipment terms to buyers and sellers of the ship as the division of risk limits. That the goods cross the ship's rail in the port of shipment before the risks, including the loading dock or drop the goods when the damage caused by the sea, by the seller;

Goods across the ship's rail at the port of shipment, including during transport damage or loss occurred by the buyer. In this case, although the seller of the goods accident, the subject matter of the insurance, have insurance benefits, insurance policies also contain "warehouse to warehouse clause" (this provision is to require insurance companies to bear liability insurance, the insured is goods from the insurance policies set forth in the port of departure shipper warehouse, has been to the goods arrive at the insurance policies set forth in the consignee's warehouse at the port of destination so far), but the insurance policy the insured is the buyer, insurance companies and exists between the buyer legally valid insurance contract between the seller and not the import and export company in Fujian insurance, the insured person or the rightful holder, so that it is not right to claim. In addition, although the buyer, the French company is the case of insurance policies and the legitimate holder of the insured, but the goods across the ship's rail in the port of shipment before, if you suffer, the interests of the insured person will not be affected, that it does not have insurance benefits, so , even though insurance policies also contain "warehouse to warehouse clause", the buyer is not entitled to the goods across the ship's rail in the port of shipment prior to the loss of claims to insurance companies.

  So how do to better protect the buyers and sellers interests?
The seller on behalf of the buyer to do the insurance, the insured is the seller, and endorsed to the buyer. The seller may claim that pre-shipment, the buyer can claim after the shipment.
The next section, I use the same case and then elaborate on the relationship between trade and insurance benefits