Whether you need to transport goods and cargo via a truck or on a boat, it
is important to have those items insured in case anything happens. While some
would argue that insurance isn't necessary, when you end up losing cargo and
you don't have insurance, you'll quickly realize how important cargo insurance
really is. There are multiple types depending on your mode of transportation,
and so I will talk about the similarities, and the differences, and why you
should get cargo insurance coverage.
Some of the different types of cargo insurance that will be available to you
is truck cargo insurance and marine cargo insurance depending on the mode of
transportation. In some cases you may need both, so it'll be important to
find an insurance company that does both kinds, if that is the case for you.
Truck Cargo Insurance
If you are having your cargo carried by a truck, then it would definitely be
prudent to get insurance for that cargo. Every company is obviously different
when it comes to motor truck cargo insurance, but there are a lot of
similarities. Sometimes it is important for the owner of the cargo to have
insurance, but companies also insure the truckers as well. This helps to
protect them from any liability for the damaged or lost freight. An often time
cargo insurance price ranges from just $10,000 up to $100,000, and often times
if your need is in excess of that, the companies can figure out a policy on a
per situation basis. The type of cargo that you are carrying will determine the
pricing structure for the policy.
Marine Cargo Insurance
There are many different things that can potential happen during shipment of
cargo and container on a ship. The loading cranes could damage the containers,
theft and piracy, weather damage, as well as potentially losing the cargo
overboard or other marine disasters. All of these possible issues are exactly
why you need marine cargo insurance. Your goods need to be protected, and if
you are a company transporting goods this way, then you need to protect your
company from these potential issues of loss. Marine cargo can be split into two
separate categories, one being conventional cargo, and the other being
specialized cargo. Specialized cargo is usually livestock or produce. If
all you'll be doing is transporting livestock, then livestock cargo insurance
would be a great option as well.
Scopes of Cargo Insurance
Depending on how much you want to pay, you can insurance only parts of the
cargo, or different kinds of cargo. You can even choose what types of
damage/issues you would like to insure against. Often times damages or
loss because of natural disasters such as earthquakes, lightning strikes, or
even volcanic eruption are not insured.
Open Cargo Insurance Policies
Some cargo insurance policies are only for specific shipments, or specific
cargo. This is good for some companies that don't do a lot of
transportation, but if you're doing a lot, this can become quite hectic trying
to make sure everything is insured. This is where an open cargo insurance
policy comes in. This will keep all of the cargo that you're transporting
insured as long as you continue to make the insurance payments. Usually, with
this type of policy, you're able to talk directly with the insurance company
for your claim, without having to deal with a middle man who costs you more
money, and who may not be as efficient in handling matters as dealing directly
with the company would be.
If you have costly things then you must take a cover that can insure their values.This will save you from hefty losses.
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William Martin
PPI Claims Made Simple