Why you need Cargo Insurance

While many overlook the importance of cargo insurance, it is something that should be taken with serious consideration as it provides a sense of security on your end. Cargo insurance pays you back for losses incurred on goods. Although there is a cost in getting a cargo insurance, it is only a small chunk compared to the loss or damage you might incur and not be repaid in the process should an untoward incident occur.

Cargo insurance comes in different types and varies on types of transport. For instance, truck cargo and marine cargo insurance may depend on the transportation’s make. You may be needing both types of insurance, so look for an insurance provider that offers both.

    • Truck cargo insurance.

Insurance providers come with different policies when it comes to truck cargo insurance. There are some companies that do not only insure the cargo but the trucker as well. This way, they are portected from shouldering any liability for the lost or damaged goods. Truck cargo insurance policies usually cover up to $100,000 but may be adjusted depending on the extent of the damage. The cargo type determines how the price is outlined from the policy.

    • Open cargo insurance.

There are insurance policies that are only created for specific cargo, which may be ideal for companies that do not heavily engage in transporting goods. Otherwise, this can be tedious as you will need to ensure that your goods are insured. In this case, an open cargo insurance is recommended. This type of cargo insurance insures all your goods being transported as long as premiums are continuously paid. An open cargo insurance allows you to make claims more easily since you deal direct with the insurance provider and no longer go through a third-party.

    • Marine cargo insurance.

Many things can happen to your cargo when carried on ship. For instance, loading cranes or the weather can damage your shipment as well as the risks of theft, tampering and piracy. A marine cargo insurance can protect you from these problems. Policies on this type may depend on the type of goods, as marine cargo can be classified into conventional and specialized goods. The latter usually involves perishable items such as produce or livestock and may have strict insurance policies.

You can insure parts of, or the entire cargo depending on how much you want to invest on a cargo insurance. You can also select the kind of damage or grounds to insure your cargo against. Usually, goods that are damaged or lost because of natural disasters are not insured.

Leave A Response

* Denotes Required Field