Transportation & Logistics
Cargo Insurance
Cargo Insurance
Cargo movement across the supply chain has always been prone to risks. Since shipments demand a significant investment of time and money, any damage or loss can become an unwanted burden. Therefore, you and your precious shipments deserve protection. That is where cargo insurance can help.
Cargo Insurance covers any physical loss to a shipment being moved from origin to the destination via road, rail, air or sea or any other conveyance. It works like regular insurance and protects the owner from unwarranted financial implications. Getting your cargo insured is not mandatory but highly recommended.
Here are the answers to some questions you may have.
Is my cargo automatically insured when I book a shipment?
No, it usually varies by region. You need to check with your freight forwarding agent about cargo insurance. Talk to us today to know how to protect your cargo best.
If my carrier provides the insurance, do I need to buy additional cargo insurance?
What kind of coverage does a cargo insurance offer?
It offers six types:
• Land Insurance: For cargo being transported via land. It covers physical damage due to accidents, theft, and pilferage.
• Marine Insurance: For cargo moving via sea or air, mostly international. It covers all physical damage endured due to poor loading/unloading, piracies, weather fluctuations, accidents, and crashes. Marine insurance offers two types of coverage:
• Open Coverage: Multiple shipments can be covered under a single policy for a certain period, like a year. Open coverage can be renewable, revived after every delivery, or a permanent one that stays active for the duration specified in the contract. It is an ideal insurance plan for those who ship frequently.
• Single Coverage: It covers damages for a particular shipment and is ideal for shippers who move cargo infrequently.
• Contingency Coverage: The consignee often refuses to accept the shipment if it is damaged. This scenario causes many losses to the shipper. Taking the legal route usually proves to be lengthy and costly. A contingency coverage safeguards the shipper from such losses. It is also inexpensive, and the shipper doesn’t need to inform the customer of its application.
• Particular Average: A partial loss sustained by the shipment during transit via sea. The shipper claims partial liability for the loss. It does not include losses incurred and non-delivery due to natural occurrences, wars, weather disturbances, theft, sinking, or collision.
• General Average: It applies only to the cargo movement by sea. If a vessel suffers damage due to occurrences at sea, all cargo owners contribute to cover the loss. Every cargo owner is liable to pay their share even if their shipment survived the damage to the vessel.
• All Risk: It covers most risks except for losses incurred due to natural disturbances, war, customs delays and rejections, handler negligence, and unpaid goods.
What does my Cargo Insurance not cover?
Your insurance will not save you from any damage or losses incurred due to:
• Cargo movement using a transport mode other than rail, road, air, or sea.
• Nature of shipment. For instance, hazardous, highly fragile, valuable cargo or certain electronic products.
• Previously flawed products, i.e. goods handed over to the carrier in a damaged condition.
• Improper packaging is done by the shipper causing damage to the goods.
Transportation & Logistics
Have something that needs to be shipped?
Let us handle your worries!
Get in touch
We speak speedy logistics.
Get a Free Quote or Ask a Question
Fill out the form and sit back while we respond with jet speed.