Cargo insurance
What is Cargo Insurance?
Cargo insurance is the best policy to protect the value of your cargo from damage, loss or theft. The insurance covers cargo movement through any transportation method, including ship, flight, truck, or train.
The cover will begin either from loading to unloading of cargo during the principal transportation (sea or air), or from door-to-door.
Some of the most common types of damage are outside a carrier’s control, including fire, acts of God, collisions, insufficiency of packing, and more.
What Does Cargo Insurance Cover?
Cargo Insurance policy coverage includes:
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Compensation for fire, explosion, sinking, and stranding during cargo journeys.
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Covers expenses from collision, overturning, or derailment of land transport.
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Compensation for cargo discharged at a port of distress.
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Coverage for general average sacrifice and salvage charges.
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Protection against natural disasters such as earthquakes and lightning.
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Covers survey fees, forwarding expenses, reconditioning costs, and sue charges.
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Total loss coverage for packages lost overboard or during loading/unloading.
Cargo Insurance Tips
If an ocean carrier declares a general average, your cargo won't be released until the deposit is calculated, which can take weeks and incur high costs. Fortunately, cargo insurance can help cover these expenses and reimburse the business for its goods.