Transportation of goods around the globe is associated with certain risks. As carriers hardly guarantee safe delivery, there is always a risk of loss or damage. This is where cargo insurance comes in. It is the way to protect consignments from physical damage and theft or pilferage during their movement from one place to another.
Getting cargo insurance means that the goods are protected for their value against any potential losses that may occur because of any external cause during transportation of the same through the air, road, rail, courier, registered post parcel, water transportation. It is a vital element of domestic and international trade.
There are different types of cargo insurance for air, land, and sea transportation. Land Cargo Insurance policies are for all land transportations. They cover theft, collision damages, etc. Marine Cargo Insurance policies are three types; open cover cargo policy, specific cargo policy, and contingency cargo policy. All cargo Insurance policies cover the risk during the usual course of transportation and end on delivery of the goods.
This article by Cerasis explains what is Cargo insurance and why you need it.
Cargo Insurance: What is it, What are the types, & Do I Need it for My Shipment?
Following up our announcement that we have negotiated lower cargo insurance costs and now offer a zero deductible for that cargo insurance, we thought we’d take a deeper look at freight insurance (also known as cargo insurance). Specifically, what is cargo insurance, and should shippers even request it. Read more here!
Cargo Insurance: Why you need it
Almost everything can go wrong during transportation. They get exposed to losses because of various risks like accidents, damages, theft, losses, improper stowage, fire, shipwreck, etc. Once the goods leave the origin, the owner has no control over the consignment, although he has to suffer for the losses.
Also known as Freight Insurance, Cargo insurance is essential, necessary, and vital for protecting a consignment from potential losses and damages during transit. No one is going to compensate the losses if goods are sent without coverage from a cargo insurance policy. This may mean a loss of business and livelihood. As goods vary in nature and the coverage needed.
It is, therefore, imperative to know the nature of the goods to be insured and their mode of packing. Some cargo insurance policies also cover losses and damages caused by war, rebellion, etc. One should be certain of the risks to be covered and the various categories of cargo insurance policies available before nodding for anyone.
This article by Shipping and Freight Resource gives in-depth knowledge about Cargo insurance and its benefits.
All you need to know about Cargo Insurance and why you need it
Marine insurance is the oldest form of insurance in the world with its roots going back to the 9th century BC. This was the start of what has developed into what we today know as general average. The first actual marine policy goes back to 1347. When it comes to the placing of any insurance it is necessary to have an insurable interest in the cargo. Read more here!
Cargo Insurance has many benefits
In this area of globalization, people are sending their cargo across the world through the surface, air, and sea transports. While the land and air transports can be used for domestic and international shipments, marine transports are used for international shipments only. Whatever may be the mode of transport, they are always some risks involved.
Cargo Insurance ensures protection of investment and covers the value of goods for loss, damage, or delay due to external causes. When goods are not covered under a cargo insurance policy, they are handled, moved, and stored at the risk of the consignee, owner, and shipper. As such, it is always best to get cargo insurance for domestic and international shipments.
The premium paid for purchasing a cargo insurance coverage is an investment that indemnifies the cargo and ensures peace of mind as the goods leave the place of origin. Cargo insurance includes simplified ways of reporting losses and prevents unforeseen stoppages of cash flow through an efficient settlement of claims.
This article by Freight Pros explains the need for cargo insurance, types, and what is covered.
What is Cargo Insurance: Benefits, Types, & Coverage
When your freight is in transit, it is prone to risk that can damage or cause the loss of your shipment. If a shipment was lost at sea because the container ship sank, the carrier liability is usually not enough to cover the value of the freight. If your truck was involved in an accident, you just lost two assets — your truck and your goods. That’s why it’s important to consider cargo insurance for your freight. It allows you to save time and money if your cargo is lost or damaged. Read more here!