Cargo should be insured no matter what kind of transport it will be transported. As a result of an insured event, your cargo can be protected from such risks as damage, shortage, loss, robbery, etc.
As a result of the insurance procedure, the cargo owner is given an insurance policy, which will be an important document in case of trouble. So, if any accident happens, the insurance company is obliged to cover the loss to the cargo owner, at that, the fault of the shipping company does not have to be proved.
In the process of covering losses of the insured event, the company-insurer can return not only the value of the cargo itself, but also the additional costs incurred, for example, the cost of cargo rescue operation, as well as the amounts required by the expertise and damage assessment. All these nuances should also be noted in cargo insurance agreement.
Peculiarities of choosing an insurance company for cargo insurance service
When you entrust your cargo insurance to an insurance company, first of all make sure that this organization has a license for such insurance procedure. Also, the license must necessarily indicate the type of insurance.
Each insurer accounts for risks in its own way, so when insuring, it is important to clearly understand the risks from which your cargo will be protected, so do not be afraid to ask questions from the insurance company, whose service you choose, and do not be lazy to check the spelling of insurance risk in the contract.
With regard to the contract, be sure to check it, because it must clearly state the following concepts:
The object of insurance (with the name, number),
route of transportation,
duration of transportation,
possible insured events,
special safety features of the cargo being transported,
term until which the contract is valid,
There are usually two types of insurance available to you:
Without a declared value – this is the simplest insurance for a limited amount;
With a declared value, which you will have to confirm with documents (for example, you will need to submit the bill of lading, check or other document).
In addition, the insurance company may offer to insure the cargo from general risks, and separately may be offered insurance against additional risks, but be prepared that the cost of insurance in this case, of course, will increase.
If you are planning to insure a multi-million-dollar cargo, you will have to look for a serious insurer, because not all banks are willing to give you a costly insurance.
In the case when you want to insure only a part of the cargo, then you must see to it that you are given shipping documents for each of the parts of the cargo individually.
We also would like to point out that you may encounter a situation where your cargo is not accepted for insurance, for example, it could be jewelry, money, precious metals and stones, weapons, explosives and drugs, etc.
And finally, for greater confidence in the right choice of insurance company it is not superfluous to look up statistics on the Internet, speaking of the percentage of payouts for insurance claims.
Types of freight insurance policies
It is possible to sign an insurance agreement on a one-time basis, in which case a one-time policy is issued.
If the shipments are repeated several times in the same direction and volume of cargo, it makes sense to obtain a general insurance policy, which will reduce the procedure for passage of insurance, saving precious time.
Thus, in case of an accident with the cargo, if you sign an insurance agreement with a company in advance, you will be guaranteed compensation for the value of the cargo. Also, you won’t lose face in front of your partner who you were sending your cargo to, because you can always show the insurance policy which will inform the other party about the reality of the failure and guarantee the return of the damage.