Cargo Insurance & Freight Insurance
Get cargo insurance. If you don’t think twice about insuring your business, home, car, etc, then you shouldn’t think twice about insuring international shipment, which can be far more error-prone. In fact, merchants have been taking out marine insurance since the ancient Babylonians first came up with the idea.
Ideally, you should compare several cargo insurance rates from freight forwarders and from specialist cargo insurance companies. That said, freight forwarders’ rates are usually favorable.
What is probably more important than who you choose to go with, though, is what type of cover you choose. Fortunately, you won’t be bombarded by choice. Cargo insurance cover clauses are pretty much standardized. The difference between these options gets technical (would you like war cover with that “A” clause?), but save yourself the bother, and just go for comprehensive cargo insurance.
- Arrange comprehensive cargo insurance.
- Verify clauses exist in your sales contract for property rights, etc.
- Understand the responsibilities and liabilities of the incoterm in your sales contract.
- Select packaging that helps prevent damage.
Cargo Insurance Coverage—What's Covered and What's Excluded
Most cargo that is shipped under a proper bill of lading will be covered by your cargo insurance. Major exclusions include, but are not limited to:
- Alcohol, Tobacco, some medicines, and any illegal drugs
- Currency and Valuables (especially art, jewelry, coins, and cash)
- Items considered dangerous (acids, explosives, or radioactive items, including some fireworks and other celebratory products)
- Living creatures
- Anything owned by your company
If you plan to ship anything excluded from cargo insurance, it may be covered by another policy (especially if you own the items in question). Otherwise, you can talk to one of our agents about alternatives for cargo insurance and freight insurance that can actually cover the transportation of high-risk items.
Freight Insurance Coverage—Large and Small Freight Shipping Coverage
Your shipping volume is a major factor in finding just how much insurance you need. In 2014, there were over 400,000 collisions involving large trucks, which comes out to over 1100 collisions every single day. The majority of these incidents are not the fault of the commercial truck driver, but the simple truth of the matter is that they do occur on a regular basis.
It's also important to note that collisions are not the only forms of loss—theft is a major problem in some areas, and average losses approach a quarterâ€‘million dollars per incident.
Larger trucking companies require more insurance in case there are problems with multiple vehicles, such as thefts from multiple trucks parked in one place. Even smaller companies are at risk, though, making cargo insurance and freight insurance one of the most important defenses of any hauling company.