From when the container leaves the port until it reaches the destination, the container will be prone to multiple risks that can often result in fatal damages.
If the container gets sink or the water damages the goods for ocean freight shipments, 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 and the vehicle.
These two factors highlight why cargo insurance is essential for 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 interests from potential harm.
As per Iedunote, cargo insurance covers customs rejection, natural disasters, wars, piracy, cargo abandonment, and vehicle accident. However, keep in mind that the cargo insurance terms and conditions depend on the carrier.
Why is Cargo Insurance Important?
The most significant 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 give 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, getting cargo insurance for your shipment is essential while shipping goods with zim tracking. 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.
Also, traffic 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 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 protects your goods from harsh weather conditions, ocean and air risks, and piracies.
Conclusion
Now you know why cargo insurance is essential for freight transportation. Ensure you read all the terms and conditions before signing the insurance paper. And if you have any questions, comment below to let us know.