March 2017

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Types Of Cargo Insurance

Cargo transportation has been identified as a mandatory need for carriers. There is a minimum amount of insurance that is required in such instances which is called the career liability. However, this carrier liability coverage is highly unlikely to cover all the cargo at an emergency situation of war, natural disaster or an accident. Therefore, you must have a sound knowledge on what steps you need to take with regard to insurance when your cargo is being transported from one location to another. The following information is to enlighten you on what you need to know on this subject.

Types

Cargo insurance is not only used in international transportation and can also be used in the process of domestically moving goods. There are two main types of insurances that t fall under this category, namely; land cargo insurance and marine cargo insurance. Under the latter type of insurance mentioned above falls three other subtypes which can be named as open cover cargo policies, specific cargo policies and contingency insurance policy. Therefore, you have plenty of type to select from.

Limitations

Just like any other type of insurance, this type too has its limitations when it comes to coverage. Especially if the goods are being transported inland via a truck, and an unfortunate accident is faced by it, you must keep in mind that your cargo insurance coverage is not going to cover the loss like a motor insurance would; different insurance agreements serve for different situations. Therefore, you need to ensure that appropriate precaution is taken before getting into action.

Benefits

This type of insurance covers any type of cargo, no matter which method of transportation you may take; road, rail, water or truck. The most extensive protection providing coverage can be identified as the all risk coverage where the cargo will be protected in situations of infestation, cargo abandonment, employees’ dishonesty, customs rejection and damages rising due to inappropriate packing. Therefore, while getting that product liability insurance policy for yourself, you may want to consider getting a cargo insurance as well if you are engaged in trading goods.

Why you should get one

Why do you think you should get one? If you read the information above carefully, there is no need of providing any additional detail as to why you should obtain one. Taking precaution is always better than facing the challenge unprotected. Therefore, if you haven’t gotten your cargo covered yet, wait no more and get yours before it’s too late and you have already faced a loss to bear.