If you’ve never ventured into the complex world of cargo insurance, here is a crash course for you:
No matter what method companies depend on for their shipping needs, tracking every container, crate and box is essential to their bottom line. Small local shipment near home, or enormous load going overseas, nothing should be left to chance.
There are so many ways to get burnt due to human error, natural disaster, or other freak occurrence, that the safety of your shipments requires full attention. Luckily, comprehensive insurance coverage is at your company’s disposal, and with the right policy, you can minimize the huge financial burden at risk.
Before your precious cargo sets sail, it’s paramount to know who’s responsible for procuring the cargo insurance. Equally important… what’s covered? Here are the basics:
The vast majority (almost 90%!) of cargo entering the United States every year does so with zero insurance coverage. Considering the billions of dollars at play, that’s a huge and unnecessary risk. While the cost of this insurance is only about 0.5% of the shipment’s value, most importers don’t even consider enlisting a policy for coverage. There are several possible explanations as to why. Among them, the shipper thinks to himself:
“My business insurance covers my shipments.” Sadly, this assumption is most often wrong.
“My supplier covers the cargo insurance.” Again this idea is usually false.
“Nothing bad has ever happened to any of my shipments.” So should you wait until after a disaster to protect yourself?
Yes, multiple types cargo insurance exist, and you need the right fit! When researching your options, make sure to ask about the following:
Depending on your business, needed coverage can include comprehensive contingent cargo insurance, commercial vehicle or fleet insurance, workers compensation insurance or additional types not listed here.
When misfortune rears its ugly head, your company could be asked to compensate millions of dollars for a sunken cargo ship… even if you are only shipping a few thousand dollars in goods. For any business involved in large scale shipping and import/export, the right cargo insurance could protect your assets, preserve your reputation, and even enhance your client relationships.
What have you got to lose?
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