International Shipping: Why Insuring Your Cargo Is Important

The ultimate goal of all parties involved in the shipping industry is safe and timely cargo delivery. It makes no difference whether the parcel forwarding service is from Frnace or Europe or on the other side of the world. Unfortunately, unforeseeable events during transit can come up despite the best planning efforts.

A roadside collision, cargo theft at the warehouse, or even a natural disaster can prompt you to file an insurance claim. This is why, if you want to protect against freight loss or damage, it’s best to invest in insurance.

MINIMIZE YOUR RISK

Freight insurance can provide a safety net in the event of potentially costly cargo loss or damage. The National Cargo Security Council estimates that the global financial loss of damaged freight exceeds $50 billion. Therefore, this issue has the potential to have a significant impact on a company’s bottom line. Unfortunately, carrier liability only covers $2.00 per pound of lost cargo in most cases. This means that if an incident occurs, you will only be able to reclaim $2,000 worth of freight out of a total of 1000 pounds of cargo.

NO DEDUCTIBLES

Although unexpected events are rare, it’s reassuring to know that you’ll be compensated for more than the amount the carrier is legally obligated to pay. Customers are not required to pay deductibles under a full-value cargo insurance policy.

For a few shipments, full-value insurance is usually required. When shipping high-value or fragile items, shippers can benefit from this. A freight broker can manage the claims process for you to save time and resources.

INSURANCE CLAIM LAWS

Once an insurance claim is filed, the carrier has a limited time to acknowledge it. Therefore, it is recommended that the claim be filed as soon as possible. Keep in mind that each country’s insurance laws are slightly different.

An indemnity insurance policy is required for a Dutch seagoing vessel with a gross registered tonnage of 300. This means that in the event of an accident, the weight of the goods, rather than the value of the goods, will be used to determine coverage. Damages can also be subject to a refund limitation. It should be specified whether or not your shipping company is exempt from insurance liability.