This type of insurance provides protection against each and every type of risk to which your freight is exposed when it is on its way whether the risk can be from land, sea or anything else. Generally majority of the companies have liability insurance but it has limitation and it can not provide you full coverage or loss that may cause to your freight due to some accident or act of God so for all those it is recommended to all those carriers which are involved in the transportation of goods from one place to another should go for cargo insurance.
When we go for cargo insurance it’s not as simple as you see it there are different types of it that provide you protection for your freight in a specific situation, like there is all risk insurance then its legal liability or motor truck freight whatever the name of the type is they exclude some of the coverage some of them are specific to some selected terminal then there are other companies which exclude some specific type of equipment so it’s not easy for a shipper to decide whether for which type of cargo insurance they should go. It’s better for them to consult with a lawyer and an insurance agent together before choosing freight insurance.
Types of Cargo policies:
Land Cargo Insurance
This insurance is for trucks and vehicles operating to transport stuff from one station to another. It covers the theft, collision damage and other risks it is for small-scale business and mostly covers a nation.
Marine cargo insurance
This type of insurance covers the transportation of freight through air and water It provides coverage against the damage or loss caused during loading /unloading, problems caused by weather and other things. This type of insurance is for exporters and importers and it’s for international transportation. There are some other policies which come under these policies and they are:
- Open coverage cargo policy is the first type with two categories the first one is called renewable and it provides coverage for a specific journey or shipment the second category of cargo insurance is permanent policy and is that is for a specific time period.
- One is contingency insurance policy in which the customer ensures the goods that will be reaching to him against any type of damage or loss the customer can refuse to own the product.
- Then there is all risk coverage in which the losses like damage that is due to inappropriate packing, Infestation, Cargo abandonment, Customer rejection and employee’ s dishonesty.
- Free from average particular insurance it covers only those losses that are caused by burning, earthquake, theft, sinking collision and the coverage amount also depend on the coverage the insurer has bought.
- Warehouse to warehouse coverage it is for those where the cargo is supposed to be unloaded on customers warehouse.
So it’s up to you to choose your cargo policy according to the type of business you are involved in.