Types of Cargo Insurance
Warehouse to Warehouse
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.
Land Cargo Insurance
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
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
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.
Risk Insurance
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 is covered by 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. Some examples of covered events include natural calamities, vehicle accidents, cargo abandonment, customs denial, and piracy.
What is typically not covered in cargo insurance?
- Hazards and difficulties that the shipper has great control over
- Damage caused by inadequate packaging or poor packaging
- Faulty products or defective goods
- Certain insurance companies do not cover hazardous materials, certain electronic goods, or other highly valuable or fragile objects
How can American Global Logistics help?
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. We can guide you through the types of insurance and help you get the coverage you need for your shipment.
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