why cargo insurance is important ?
The transition of Cargo nowadays is a common operation in logistic businesses. Amidst the transportation, there are chances of damage or losses. Recently, the world has witnessed the biggest news that was the container ship blocking the Suez Canal. This clearly indicates unexpected issues can come across while transporting goods. A few of the potential problems are losing items due to ship sinking or trucks meeting with an accident. Therefore, it becomes essential that air cargo shipping international is insured. In case of cargo loss, time & money can be saved that otherwise gets consumed in finding the whereabouts.
To give you insight, this post will provide detailed information related to cargo insurance, benefits, and types. Furthermore, taking a read will also help you know about the coverage’s you will enjoy.
Foremost comes the question :-
What is cargo insurance ?
Answering this in simple terms, such insurance offers you protection from the loss that primarily happens financially. It includes payback of the amount that has been invested keeping the future unfortunate events in mind. Certain events such as disaster, accident, abandonment, war, rejection at the time of customs check due to incomplete air cargo documentation are taken into account while making the coverage policy.
What are the benefits of Cargo Insurance ?
- An uninterrupted flow of money in case of unforeseen halts or holds.
- Earning of calculated profits.
- Easy to follow procedures for claiming insurance amount.
- Quick reporting of losses.
To enjoy all the above-mentioned advantages here is the first thing that you should keep in mind.
When is the Right Time to Insure Cargo ?
The professionals usually advise getting the insurance even when the law is not mandating it. Before the cargo is moved towards the destination and goods are getting transferred to different ports & trucks, it will be wise to ask for insurance. There is a high probability of external factors like weather or traffic affecting the shipment. In addition to this, there are also chances of misplacing or damaging shipped items.
Types of Cargo Insurance :-
- Land Cargo
- Marine Cargo – Marine cargo is further divided into open coverage & single coverage.
- Contingency
- All Risk
- Free From Particular Average
- General Average
- Warehouse to Warehouse
All above mentioned will be discussed in detail with our new blog post. So stay tuned with updates.
Apart from the aforementioned information one of the imperative things that one need to have information is
What does not get covered in cargo insurance?
- Damage caused due to poor packaging.
- Inferior quality of the product that led to breakage.
- Hazardous material or cheap quality electronic products, fragile items.
- A certain mode of transportation.
Conclusion :- Insurance plays a crucial role in the shipment process. While making use of any mode for the transportation of goods like truckload services in New York, air cargo etc., it is definitely a smart move to ask about the insurance coverage beforehand. Unquestionably, this is keeping your financial loss at bay. To help yourself regarding the same, it is advisable to reach out to a reputable name in Cargo Shipping. Their years of establishment & expert team guide you from the initial stage to the documentation for claiming the amount. This undoubtedly would bring an advantage to you.
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