Cargo insurance is a type of insurance that protects the value of goods being shipped from physical damage, theft, or loss during transit. It is not always automatically included for all shipped goods, and instead, shippers or consignees can purchase policies in the insurance market from niche providers, large brokers, local agents, websites, and freight forwarders. Cargo insurance is not required by law, but it is highly valuable to those who need to protect their goods from risks. The following are some key points to consider about cargo insurance:
- Cargo insurance can cover liability for cargo damage or lost cargo due to covered events like collision, fire, or striking of a load.
- The level of the insurance premium depends on several factors, including the value and nature of the goods, the destination, and the selected mode of transport.
- Cargo insurance can protect against financial losses while goods are in transit during shipment on the road, and may also cover costs of preventing additional loss to damaged cargo, legal costs in the settlement or defense of claims, and freight charges customers lose due to not delivering a load.
- Cargo insurance is normally less expensive than tracking, and if a parcel is damaged in transit, tracking may be unhelpful, but shipping insurance may reimburse the sender in full.
- Cargo insurance is a must-have when transporting goods, and it ensures that the value of goods is protected against potential losses which may occur during air, sea, or land transportation.
