Importance of cargo insurances

Why to take cargo insurances?

It’s always a good option to take preventive measures over your shipment because there are factors that goes beyond our control like bad weather conditions. So if something happens during shipment, a good insurance scheme can lift you up from the loss.

Common types of cargo insurance.

It’s almost like health and life insurances. There are many cargo insurance policies you can choose from. Each has its own coverage and limitations.

1.Land cargo Insurance

It covers your shipment when its being transported via land. It’s a domestic one and coverage is only with in the country. All the land transportation modes are included like Trucks, other utility vehicles

Coverage aspects: theft, collision damage and related risks

2.Marine cargo insurance

This type covers transportation through sea or air. It is mainy used for international shipment. Marine cargo insurance policies are either renewable or permanent. If you’re not a frequent shipper, it’s better to choose the renewable policy as it applies to one-time, single voyages. These tend to be relatively cheap. As for frequent shippers, a permanent policy will cover you for a determined period of time regardless of the number of shipments you’re sending.

Coverage aspects: damage while loading/unloading, bad weather, piracy and related risks

Benefits of cargo insurance:-

All risk coverage

The all-risk coverage offers wide range of protection against external factors. In general, it covers most types of physical losses and damages as a result of the external causes. This is usually for what’s deemed as “approved” or “general” goods. That means goods that are new and not easily susceptible to losses and damages.

What are excluded?

·       Damage due to negligence

·       Custom rejection

·       Cargo abandonment

·       Loss of market

·       Non payment issues

General average coverage

This coverage is useful for marine cargo transits. It takes only partial loss occurred to the shipment. Under general average, all losses from damages caused during a problem at sea, should be divided among owners of the surviving merchandise. That means as the owner of a cargo that has not suffered damages, will be liable for financial compensation to the owner whose cargo has been damaged or lost.