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What is cargo insurance and why is it important?

Transporting goods entails risks. Any number of things can go wrong with goods during transport. That's what makes cargo insurance so important. It can help protect the value of your goods against losses during transport by sea, air or rail.

Goods insurance provides protection against financial loss for cargo lost or damaged due to a covered event. These usually include natural disasters, piracy, acts of war, vehicle accidents, cargo abandonment and customs rejection. Cargo insurance is not always included automatically for all goods transported. Shippers and recipients can buy insurance from a variety of sources, including our experienced agents.

What are the benefits of cargo insurance?

Just like car insurance, cargo insurance protects you in the event of the unexpected. Although not required, it is recommended to protect your goods from risk exposure. Even when you can prove that a carrier is liable for damages, the limits of its liability can be extremely low. Without the right insurance coverage, you can lose a large portion of the value of your cargo. This type of insurance can help protect your company's cash flow from unforeseen stops, making it possible to generate profits.

What are the main types of cargo insurance?

There are mainly two categories of cargo insurance:

  • Country . cargo insurance: This type of insurance covers goods transported by lorries, commercial vehicles and other types of land transport. It is usually used for domestic goods. Land freight insurance covers collision damage, theft and other risks involved in land freight shipping.
  • Sea freight insurance: This insurance mainly applies to international shipping. It includes goods transported by sea and air freight. Coverage includes weather damage, piracy, loading or unloading and other risks.

What types of shipping insurance are available?

Different types of shipping insurance are available, depending on your shipping needs: [1

9659002] Open insurance covers shipping under a certain time period and can include several shipments under a single insurance. This type of insurance can be renewable after a shipment has been delivered, or permanently, enabling unlimited deliveries within the insurance period.

Policies with single coverage cover goods per shipment. This type of coverage may be appropriate if you ship infrequently.

Contingency insurance covers the seller in cases where the customer is responsible for the insurance but refuses to accept goods damaged during transport.

What Is Not Covered by Cargo Insurance?

Freight insurance does not cover risks over which the sender has significant control. In general, goods insurance excludes:

  • Damage caused by incorrect packaging
  • Damage due to incorrect products
  • Specific types of freight, including hazardous materials, certain electronic products and valuable or fragile items
  • Freight transport other than ships , airplane or truck

If your company sends shipping, you need cargo insurance to protect you against potential loss. Our knowledgeable agents can help you find the right shipping insurance for your business relationships at the best available prices.

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