Cargo Insurance

Cargo Insurance

Cargo insurance indemnifies you against financial loss caused by damaged or lost cargo. It pays you the coverage specified in your policy if a covered incident affects your freight. Examples of covered events can be:
Natural calamities
Vehicle accidents
Cargo abandonment
Customs denial

What is cargo insurance?

Cargo insurance reimburses your costs associated with cargo transportation from A to B (seller to buyer). Casualty insurance includes the buyer's profit. However, it does not include loss of income in general or owner's liability.
Cargo insurance is different from the carrier liability and insurance policies that are usually available from companies that deal with cargo and freight.

Benefits of cargo insurance

Cargo insurance acts as a safety net if your shipment is damaged or lost--minimizing the financial blow to your business. This coverage gives you peace of mind knowing that your goods are protected while in transit.
Cargo insurance not only protects your cash flow from unexpected delays but also allows you to make money even if the policy covers it. Profits are still generated if coverage includes it.
Having insurance means that if something happens, we can help you quickly. We will also make it easier for you to report any losses.

Cargo insurance types

It is important to look at the incoterms of your contract. This will tell you when you are responsible for certain things during the shipping process. This can help you save money on insurance because you will only need to pay for it when it is necessary.

Warehouse to warehouse is the most common form of cargo insurance. It covers the freight that has been unloaded from the ship and is on its way to a client's warehouse. It only applies to your goods regardless of whether they are carried in the truck with other items.

Cargo insurance for shipments moved by land transportation is referred to as land cargo insurance. This includes vehicles and small utility vehicles that can transport goods. Land freight shipping involves risks such as theft, damage, and other hazards.

Marine cargo insurance protects your ocean and air freight from damage caused by loading/unloading, weather conditions, piracies, and other risks. It's mainly used for international shipping and covers boats and planes.

Open coverage means that your freight is insured for a specific period, and you can include multiple shipments under one policy. This is a good way to manage risk if you ship frequently.

All risk insurance covers most types of damage or loss to goods, as long as the goods are new and not likely to get damaged or lost.

What doesn't cargo insurance cover?

Cargo insurance does not cover hazards and difficulties that the shipper has great control over. It is vital to remember this when arranging your shipment so you can avoid having it damaged or lost.
Inadequate packaging is one common reason why cargo insurance claims are rejected. If the damage to your goods can be attributed to poor packaging, then the policy won’t cover you.
Damage caused by faulty products is not covered by cargo insurance. If the carrier can prove that the damage was due to defective goods aboard your shipment, the policy will not reimburse you.
Certain insurance companies do not cover hazardous materials, certain electronic goods, or other highly valuable or fragile objects. Some policies might just pay for the freight if it's on a ship, plane, or truck at the time of loss.
We are experts at cargo insurance and can help you get the coverage you need for your shipment. Give us a call today to learn more about what we can do for you.

Cargo insurance is important because it protects your investment in your shipment. If something happens and your goods are damaged or lost, cargo insurance will reimburse you for the cost of the goods.