Cargo Insurance

In this day and age, some might be wondering why incur additional expenses by purchasing cargo insurance. All it does is to eat into profits. However, in times of uncertainty, when unexpected events are on the rise, you do not want to sustain losses due to damaged or lost goods. As such, these are some compelling reasons to purchase cargo insurance:

⚠ Unexpected Events

• Cargo Theft
• Catastrophic Disasters
• Piracy
• Damaged Goods
• Loss of Goods

Reduced Exposure to Financial Risks

Cargo insurance can help by mitigating losses due to the above-mentioned reasons by ensuring that the value of the merchandise being shipped is covered. This could reduce the burden for business owners during times of unfortunate events and ensure their businesses’ survival.

Coverage for Limited Carrier Liability

By law, most carriers are not held accountable for losses due to certain acts, such as Acts of God or terrorism. And in instances that they are, carriers often have limited liability. Hence, the financial losses are mainly shouldered by the exporter or importer, depending on the terms stated in the contract. As such, it is crucial to have cargo insurance to cover you when unfortunate events occur to provide financial peace of mind.

General Average

It is an international practice that losses due to accidents will be split equally among all parties. Hence, there may be times whereby you are required to pay a bond or deposit for the release of your cargo, even if there are no losses or damages to your goods. In these events, the insurance company can assume responsibility and help to speed up the process to ensure the timely arrival of your cargo.

Requirement by Contract

Depending on the terms defined in the contract, the exporter or importer may be held responsible for purchasing cargo insurance before the goods are sent over.