Everything You Need to Know About Cargo Insurance

Everything You Need to Know About Cargo Insurance

From the time the container leaves the port till the time it reaches the destination, the container will be prone to multiple risks that can often result in fatal damages. 

For ocean freight shipments, if the container gets sink or the goods are damaged by the water, the shipping carrier won’t take any liability. Just like that, if you choose land freight and the containers end up in an accident; you will lose both your goods as well as the vehicle. 

These are just the two factors highlighting why cargo insurance is important for your international and domestic shipments. Investing in the proper cargo insurance will ensure minimum loss even if the cargo is lost or damaged. 

What is Cargo Insurance?

The primary objective of cargo insurance is to protect your good from any financial loss due to lost or damaged cargo. It’s like an investment you make to safeguard your goods from potential harm. 

As per Iedunote, events covered by cargo insurance are generally customs rejection, natural disasters, wars, piracy, cargo abandonment, and vehicle accident. However, keep in mind that the terms and conditions of the cargo insurance are dependent on the carrier. 

Why Cargo Insurance is Important?

The greatest benefit of cargo insurance is that it’s the best way to minimize the risks of financial loss even if the cargo is damaged. The premium or small regular payments you pay for your cargo insurance will provide you a great sense of security each time you ship goods. 

Other great benefits of cargo insurance are:

  • Abrupt disruptions won’t affect the cash flow of your business
  • The professional offerings will ensure effective insurance claim procedures
  • Report of damage or losses is more convenient

When Do You Need Cargo Insurance?

Even though it isn’t mandatory, but getting cargo insurance for your shipment is important while shipping goods with zim trackingThis is because your shipment might be vulnerable to several risks during the journey. As the containers will be moved through several modes of transport, it’s advised to get cargo insurance. 

Apart from that, traffic conditions and natural disasters such as harsh weather conditions can damage your cargo. The longer your shipment is exposed to the risks, the more damage will be done to your freight. 

Types of Cargo Insurance

Cargo insurance can be categorized into two primary parts: marine cargo insurance and land cargo insurance. Keep in mind that marine cargo insurance also covers air cargo insurance. 

Land Cargo Insurance

Just like the name suggests, land cargo insurance protects the goods that are transported inside trucks or other types of vehicles. Land cargo insurance covers risks such as theft and collision damages. However, the scope of land cargo insurance is limited to domestic cargo as land transportation usually doesn’t happen across countries. 

Marine Cargo Insurance

Marine cargo insurance covers both air and ocean freight. Typically, marine cargo insurance is used for international transportation. This insurance will protect your goods from harsh weather conditions, various ocean and air risks, and piracies. 

Conclusion

Now you know why cargo insurance is extremely important for freight transportation. Make sure you read all the terms and conditions before signing the paper of insurance. And if you have any questions, comment below to let us know. 

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