5 Things you must know about Cargo Insurance
1. Who needs Cargo Insurance?
Whilst cargo is in transit, the usual security afforded by bricks and mortar doesn’t exist, and cargo is therefore at a much higher risk of being damaged or stolen. Ideally all cargo should be insured whilst in transit as luckily this insurance is relatively cheap, but the costs of replacing your entire load of cargo could be great.
If you arrange your transit through a freight forwarder, it is worthwhile to compare the rates they charge you for insurance versus the rates you would be charged directly. Most often, taking your own insurance will save you on the costs of importing & exporting.
2. Why should you take out Cargo Insurance?
We live in a world rife with crime, changing weather conditions & less robust equipment. Add to this the human tendancy for accidents, maintenance faults, lack of care when handling etc & the need for insurance when transporting your cargo becomes obvious. Insurance costs a fraction of the price of replacing your cargo if it is damaged or stolen. Taking out transit insurance is a prudent way to ensure that you will not have to pay again for cargo when it does not arrive safely.
3. How much does Cargo Insurance cost?
We deal with many goods in Cargo insurers, so we will be able to find the most beneficial policy with the best premiums for your cargo.
4. Typical claims incurred on Cargo Insurance policies:
The most common claims on transit insurance policies involve cargo being damaged by mishandling, water seeping into boxes, entire cartons disappearing during transit or the truck carrying the cargo being involved in an accident & the cargo inadvertently being destroyed. The most expensive claims tend to be caused by the entire vessel being sunk, the airplane crashing or the vehicle being hi-jacked.
5. What other insurance should be considered along with Cargo Insurance?
Lots of goods in transit insurance policies do not automatically include cover for loading & offloading. It would be disastrous for you to have properly insured your cargo all the way to the final destination, just to have it dropped whilst being offloaded & not covered for the same. For companies that have many separate trips involved in getting their cargo to the final destination, a stock throughput policy covering the entire trip is highly advisable.