Why does the insurance clause in the purchase contract require the supplier to insure the goods (beneficiary or supplier)?

For extra assurance. If the goods are damaged during transportation due to extreme weather or other factors, the buyer will not pay the fee. At this point, the supplier can claim compensation from the insurance company to reduce the loss.

Cargo insurance:

Cargo insurance, also known as freight insurance, takes the goods in transit as the subject matter of insurance, and the insurer is responsible for the loss of goods caused by natural disasters and accidents. It is a kind of cargo insurance guarantee for commodities in circulation.

Features:

I. Variability of the Insured

The insured transport goods may be resold many times during the delivery of insurance, so the beneficiary of the final insurance contract is not the insured specified in the insurance policy, but the applicant.

Second, the transfer of insurance interests.

When the subject matter of insurance is transferred, the insurable interest is also transferred.

Three. Liquidity of the subject matter insured

The subject matter of cargo transportation insurance is usually movable property with commodity nature.

Fourth, the extensiveness of underwriting risks.

The risks covered by cargo transportation insurance include maritime, land and air transportation risks, natural disasters and accidents risks, dynamic and static risks, etc.

V. Fixed value of insurance value

The price of the insured goods may be different from place to place, so the insured amount of the goods can be determined by the insured parties according to the agreed insured value.

Transferability of intransitive verb insurance contract

The insurance contract of cargo transportation insurance is usually transferred with the transfer of the insured subject matter and the insured interest, without notifying the insurer or obtaining the insurer's consent. Insurance policies can be transferred by endorsement or other customary means.

Seven. Particularity of insurable interest

The particularity of cargo transportation determines that cargo insurance usually adopts "lost or not", that is, the insured does not know in advance and has nothing to hide. Even if the subject matter insured has been lost before or when the insurance contract is concluded, the insurer will compensate if it is found that the insurance risk has caused the loss of the subject matter insured.

Eight. Rigidity of contract termination

Cargo transportation insurance belongs to voyage insurance. Insurance law and maritime law stipulate that after cargo transportation insurance begins with insurance liability, the parties to the contract may not terminate the contract.