Do you know that there is a great difference between freight and cargo insurance? Why is it so important to get insurance when you use shipping services? How to pick up the best coverage solution for your business? If you are interested in the answers to these questions, the following information may be rather helpful.
The first thing to be clarified is the importance of cargo and freight insurance. Even if you packed and stored all the items in the best probable way, it’s still impossible to exclude the possibility of losses or damages to your property. Natural disasters and car accidents are only a couple of the potential risks you should consider. There is a perfect solution to protect your business from financial losses. You should get insurance. It’s worth highlighting that reliable and competent freight forwarders always offer their clients to insure their property.
Types of Insurance
These days there are so many companies needing freight moved. They differ in sizes and types of cargo. It’s worth mentioning that all carriers are obliged to carry a minimum amount of payments. Yet, it doesn’t often cover all the potential risks. You have two viable ways out – you can negotiate coverage with your freight forwarder or get it from insurance companies. The first variant is more favorable.
There are the following types of cover depending on the object of cover:
It’s necessary to point out that all the potential mishaps are included in the price of forwarding services. In other words, freight coverage protects forwarders. At the same time, the first variant may cover all the possible financial wastes caused by damages to your items.
Depending on the type of delivery you need, the following types of coverage are available:
One of the most popular logistics services is truck shipping. It is able to please a wide range of clients. It’s the most convenient and profitable way of transportation. Yet, it has a significant drawback. Car accidents happen quite often. You never guess whether the truck you hire will get into an accident or not. Yet, you can protect yourself from negative consequences;
When it comes to long-distance transportation, many companies still prefer marine shipping. Yet, during the long transportation period, your items can be damaged or spoiled. This variation of guarantee also protects your goods from fire, mishap, and even bad weather;
Air transportation is the fastest way to deliver your goods. Yet, it’s the most expensive, too. The risk of a crash is minimal. At the same time, the risk of losing your parcels is rather high. So it’s better to protect your products.
It’s possible to get coverage for a definite period of time (e.g., for a year) or just for a single shipment. It’s possible to pick up the most profitable plan for your business. Before you sign an agreement, you should read it carefully. It’s necessary to pay attention to exclusions. You can’t count on loss indemnity if damages are the results of your negligence or improper packing. The same is true about mishaps due to strikes or war conflicts. So, no matter what type of shipping your experience, coverage is one of the main things you should think about. Otherwise, you may incur a financial loss.