Ever juggled a dozen eggs on a unicycle over a tightrope? That’s how transporting goods globally feels – challenging and risky. Your cargo faces natural disasters, crosses borders, and battles risky routes. Think about the financial chaos if things go south – damaged goods, lost shipments, and a headache-inducing mess.
However, there’s a savior for this mess: cargo or freight insurance. But what is the purpose of freight insurance, and is cargo insurance worth it?
In this post, we’ll answer these questions, discussing the role and importance of freight insurance for businesses and sharing tips for obtaining & optimizing it. Plus, we’ll guide you through the process of filing a claim. So, let’s jump right in!
The Importance of Cargo Insurance: Key Takeaways
- Cargo insurance protects against the loss of goods during shipment by covering various risks during air, sea, or land transport.
- Different policy types exist, including all-risk coverage, open coverage, total loss only, and more.
- Cargo insurance has exclusions like an inherent vice, improper packaging, and contraband.
- Cargo insurance is essential for businesses to safeguard against transportation risks, theft, natural disasters, regulatory compliance, supply chain disruptions, and geopolitical situations.
- Cargo insurance enhances financial protection, ensures compliance with trade regulations, and boosts a company’s credibility.
- When obtaining cargo insurance, businesses should consider factors like the type of cargo, transportation mode, cargo value, destination, route, and transit duration.
- When dealing with cargo insurance claims, understand your policy, document thoroughly, choose reliable partners, and act promptly.
- In the event of a claim, notify your carrier immediately, gather evidence, inform your insurer, and engage in negotiations for fair compensation.
- Regular assessments, risk management strategies, and strong partnerships with logistics partners help optimize cargo insurance coverage.
Understanding Cargo Insurance
Cargo insurance is a deal between you and the insurance company to protect your goods while shipping. And what does cargo coverage cover? It covers shipments of all sizes, whether on pallets, in containers, or as bulk cargo, or going by air, sea, or road.
Unlike marine insurance, which is mainly for sea transport, cargo insurance combines risks from different shipments to spread the cost of losses.
But what does cargo insurance do, exactly?
You pay a premium to the insurance company, and in return, they compensate you if something happens to your cargo, like natural disasters, accidents, or piracy.
Cargo insurance isn’t one-size-fits-all like carrier liability. It can be tailored for specific trips or set up to cover all your company’s shipments for a certain period. This flexibility is unique compared to other types of insurance.
Besides, if you ever need to make a claim, having cargo insurance can speed up the process because you typically declare the value of your goods before shipping, making it easier to determine the compensation you should receive.
Types of Cargo Insurance Policies
Cargo insurance comes in two primary flavors: one for land and another for marine (which also includes air cargo). Each type has its own set of coverage and protection rules tailored to what the owner or shipper needs based on the risks involved. Here are some common types of cargo insurance policies:
- All Risk Coverage – This insurance provides the most extensive protection, covering all types of physical loss or damage from external causes. It’s ideal for valuable, delicate, or perishable items, safeguarding against accidents, natural disasters, mishandling, piracy, and improper storage.
- Open Cover – An open cover cargo policy is when the insurer covers multiple cargo shipments. There are two types: renewable and permanent/non-renewable. Renewable policies need renewal after a set period, often for single consignments. Whereas permanent/non-renewable policies cover numerous shipments over a longer duration without renewal.
- Total Loss Only – This policy kicks in when the entire shipment is lost. It’s chosen when the risk of partial damage is low, or the cost of such damage is insignificant.
- Named/Specific Perils – This policy covers damage or loss caused by listed perils like fire, theft, or collision. While less comprehensive than All Risk coverage, it can be customized for specific cargo-related risks.
- Contingent – Contingent cargo insurance acts as a contingency plan for shippers. It is designed for complex claims between shippers and carriers. This type of insurance plan kicks in when standard cargo insurance falls short, ensuring you’re covered when you need it most..
- Land Cargo Insurance – Covers cargo moved by land, including trucks and utility vehicles, protecting against theft, collision damages, and other risks in land freight.
- Marine Cargo Insurance – Protects goods transported by sea and can extend to cover air transportation.
- Air Cargo Insurance – Covers goods transported by air, ensuring protection during air transit.
What Cargo Insurance Doesn’t Cover— Common Exclusions and Limitations
Though cargo insurance is vital for protecting goods in transit, there are specific exclusions and limitations to what it covers. However, the coverage details can vary significantly among insurance companies and specific policies. Here, we have mentioned some scenarios that cargo insurance usually doesn’t cover:
- Inherent Vice – This is when goods in transit are damaged due to foreseeable issues from the nature of the products, like unstable chemicals causing explosions.
- Latent Defect – This term refers to unnoticed problems in a product, such as cracks from improper manufacturing that aren’t easily seen upon inspection.
- Improper Packaging – If cargo isn’t securely packed, like using loosely built crates, resulting damage may not be covered by insurance.
- Willful Misconduct by Assured – Cargo insurance excludes damages caused by intentional misconduct, like importing damaged products to make a claim.
- Unexplained Loss or Shortage – Excludes losses occurring due to a vehicle owned, leased, or operated by the insured party. This is because insurance companies assume the insured party will take necessary precautions to avoid theft or damage when the cargo is under their control.
- Limitations – Pharmaceuticals, tobacco, alcohol, and live animals are typically not covered by cargo insurance. This is because pharmaceuticals are sensitive to storage conditions, and tobacco and alcohol face complex regulations. While transporting live animals involves unpredictable risks that are hard to mitigate.
- Cargo in Custody of Another Carrier – Excludes coverage when the shipment is in the custody of another carrier. If damage or loss happens while the load is in their care, the responsibility typically falls on the carrier’s insurance handling it, not on the initial cargo insurance policy.
- Storage Over 72 Hours – Cargo stored for more than 72 hours may not be covered. This exclusion is because cargo insurance mainly protects goods during transit. The risks during extended storage are distinct from those during transportation.
- Loss Due to Delay – Cargo insurance is set up to handle physical damage or loss like fires, accidents, or theft. However, it doesn’t cover losses due to delayed products and revenue loss.
- Damage Due to Negligence – Any damage from crew or labor negligence is typically not covered. This exclusion exists because cargo insurance is meant for unexpected and accidental events. Crew or labor negligence is seen as avoidable, not something unforeseen.
- Insolvency of the Cargo Company – Cargo insurance usually doesn’t cover losses due to the cargo company’s bankruptcy.
6 Reasons Why You Must Get Cargo Insurance
The rapid growth of e-commerce has increased global shipping. This uptick in cargo volume has naturally heightened the need for cargo insurance since more goods in transit pose a greater risk of loss or damage.
In 2022, the global cargo insurance market hit $71.4 billion and is expected to climb to $106 billion by 2032. That’s a growth rate of 4.1% from 2023 to 2032.
Source: (alliedmarketresearch.com)
This increase is attributed to the surge in the e-commerce sector, which in turn is expanding international trade and logistics. The diversification of logistics operations in the e-commerce sector also brings new risks, necessitating more comprehensive cargo insurance policies.
Thus, safeguarding cargo from natural disasters, accidents, delays, and damages during transportation and last-mile delivery has become crucial. However, the question of “Is freight insurance worth it?” remains.
Let’s break it down with a little example:
Suppose you’re shipping $200,000 worth of goods, and things go sideways. No insurance and a 10% profit margin mean you need $2 million in sales to recover. But reality check – it’s not that simple. Seasons change, demand dips and your company takes a financial hit.
Now, enter cargo insurance. For a few hundred dollars (a fraction of the landed cost), fund a new purchase order. Opt for Retail Value coverage, pay a bit more, and get back on track, recovering the full retail sales price.
Still not convinced? Here are six reasons why you must get cargo coverage.
1. Transportation Risks
Cargo insurance protects against physical losses or damages caused by external factors during shipping. For instance, containers can tumble off ships during rough storms. According to the World Shipping Council, an average of 1,566 containers were lost at sea annually from 2008 to 2022. In the most recent three years (2020-2022), the average losses increased to 2,301 containers annually.
A real-life example from Argus, an oil and pipeline construction company, illustrates the value of cargo insurance. In 2012, a truck carrying $809,000 worth of welding equipment for Argus caught fire during transport from Finland to Moscow.
The cargo insurance promptly covered the claim, paying for the replacement parts. Later, a cargo ship with two Argus containers caught fire in the Atlantic Ocean. The cargo policy covered the General Average claim, resulting in a full settlement of $150,000 plus an additional 10% for the demolition costs of the goods.
2. Theft and Pilferage
Cargo theft is a big problem, with losses reaching $13.9 million in the third quarter of 2018. There were 188 reported incidents across the U.S. and Canada during that period.
Pilferage, involving the theft of part of the load, made up 15% of thefts in 2017. According to data from the Transported Asset Protection Association (TAPA) for the Americas, this is the highest on record.
Cargo insurance protects against loss from theft and pilferage.
3. Natural Disasters
Bad weather, like extreme heat or storms, can cause shipping delays and financial losses. For example, in June 2021, a crazy heatwave in the Pacific Northwest damaged roads, rails, and bridges, disrupting freight movement.
Cargo insurance is like a safety net for situations like these. The business doesn’t have to handle the entire financial mess if a natural disaster wrecks a shipment.
4. Regulatory and Compliance Risks
Changes in global and local rules, taxes, and trade policies can create problems following the law. Some countries even demand specific cargo insurance for shipped goods. If you don’t follow these rules, you could face legal trouble, lose money, or harm your business’s reputation.
However, cargo insurance helps businesses stick to international and local laws for moving goods, reducing the risk of a damaged reputation. If you’d rather not deal with compliance, rely on Unicargo’s expert team to navigate complex regulations.
We keep up with the latest FDA and PGA guidelines and work closely with local authorities. Our team can handle everything – from taxes to permits- making sure your imports are smoothly delivered without delays, fines, or other issues.
5. Supply Chain Disruptions
Supply chain issues can result in business interruptions and financial setbacks. Take the case of Ever Given blocking the Suez Canal in March 2021—it had a major impact on global supply chains.
The Suez Canal, crucial for about 10% of all global trade, was blocked, holding up roughly $9.7 billion worth of products daily and causing delays in restocking retailer inventories. In such situations, cargo insurance is crucial, especially for businesses heavily dependent on complex supply chains.
You can also boost your business’s competitiveness with quicker time to market using Unicargo’s PO Management service. We streamline supply chain operations through efficient communication and exceptional management.
Our teams can communicate effectively with suppliers, monitor cargo-ready dates, and proactively handle production delays. We address issues promptly, flagging them when needed to minimize disruptions and uphold transparency. Our local teams, familiar with native cultures, bridge gaps for faster issue resolution and improved supply chain performance.
6. Geopolitical Situation
Political conflicts can shut down vital trade routes or ports, causing disruptions and delays or even cancellations of shipments. The war in Ukraine, for example, raises the risk of damage or loss to cargo.
In early April 2022, many merchant ships were stranded in Ukrainian ports along the Black Sea and the Sea of Azov. Meanwhile, vessels in the broader region faced dangers like sea mines, rocket attacks, and the risk of being detained.
Additionally, conflicts can prompt shifts in international trade rules, like sanctions or embargoes. Fortunately, cargo insurance policies cover losses arising from acts of war and terrorism. This is important for businesses operating in regions with high geopolitical tensions.
The Bigger Picture: 4 Business Benefits of Cargo Insurance
We’ve nailed why it is important to have cargo insurance in general. Now, let’s zoom out and talk about the bigger business and operational game. What are the advantages of cargo insurance for your business? What perks does it bring to the table?
Let’s find out!
1. Provides Financial Protection for Businesses
In international shipping, there are limits on how much carriers are responsible for if your cargo gets damaged. Like, in air freight, carriers are only on the hook for 250 francs or 19 SDR per kilo. Road freight caps it at 8.33 SDR per kilo under the CMR Convention, and sea transport limits liability to 835 SDR per package or 2.5 SDR per kilo.
Under the Convention concerning International Carriage by Rail (COTIF), rail transport has a limit of 17 SDR per kilo for lost or damaged cargo. If something goes wrong and you don’t have cargo insurance, you could be looking at big financial hits. Accidents with your truck could mean losing both the vehicle and the goods.
Also, if the damage is from inadequate packaging or the nature of the goods, the carrier won’t cover it. But with cargo insurance, businesses get a safety net. It keeps the cash flow going during unexpected disruptions, ensuring profits can still roll in if the coverage includes them.
2. Mitigate Operational Disruptions
Cargo insurance is vital for keeping business operations running smoothly. It speeds up the settlement of claims, helping businesses swiftly recover losses. This quick process is essential for maintaining smooth operations, allowing companies to restock or replace damaged goods promptly.
Fast claim resolution prevents extended disruptions in the supply chain, ensuring businesses can meet customer demands without delays. For instance, cargo insurance can efficiently handle the situation if unexpected port strikes threaten a business.
It offers financial support to manage the extra expenses of redirecting shipments, minimizing downtime, and enabling a quicker return to normal operations.
3. Ensure Compliance with International Trade Regulations
Cargo insurance, often mandated by international trade rules, is a must-have for businesses. For example, the Carriage of Goods by Sea Act (COGSA) regulates sea transport, stressing the need for cargo insurance by limiting carrier liability. The Montreal Convention does the same for air cargo.
Incoterms, which are international trade terms like EXW, FOB, or CIF, determine who should secure cargo insurance. Different countries have specific regulations for cargo insurance, especially for goods like hazardous materials.
For instance, the U.S. Department of Transportation (DOT) requires a minimum coverage of $750,000 for non-hazardous goods and $5,000,000 for the most hazardous materials. Following such rules is vital to avoid legal troubles and disruptions to business operations.
4. Enhance Business Credibility and Reliability
Beyond financial protection, cargo insurance brings indirect benefits, enhancing a positive business reputation. It showcases a company’s dedication to protecting its goods and managing risks, instilling confidence in clients and partners.
By securing shipments with cargo insurance, businesses affirm their reliability and professionalism, fostering stronger relationships with customers. Showcasing financial stability and responsibility with cargo insurance also enhances ties with suppliers. This promotes increased collaboration and transparency for a more efficient and reliable supply chain.
5 Factors to Consider When Choosing Cargo Insurance
Building on the positive image created by cargo insurance, another critical aspect is considering factors when choosing the right coverage. You’ll need to consider the type & value of cargo, transportation mode, destination & route, and transit duration. Let’s explore these variables further.
1. Type of Cargo Being Shipped
Cargo insurance is customized based on factors like the shipping type. Different items carry distinct risk profiles, necessitating personalized insurance solutions. For instance, electronic equipment may need coverage against electrical damage. Then, perishable goods may require protection against spoilage in temperature-controlled transport.
Therefore, tailoring insurance to the unique vulnerabilities of your cargo is crucial. Specialized insurance policies with higher limits and specific exclusions are also necessary for certain commodities like artwork, antiques, or precious metals.
2. Transportation Mode
With each mode of transportation—sea, air, and land—comes distinct risks. Sea transport grapples with rough weather and piracy, air transport contends with turbulence and handling damage, and land transport faces risks like accidents, theft, and delays. To ensure effective coverage, customize your insurance to the unique risks associated with your chosen mode of transport.
3. Value of the Cargo
The more valuable your shipment, the more comprehensive your insurance should be to ensure adequate compensation for any loss or damage. Under a cargo policy, goods are typically valued at the invoice cost, freight charges, and an additional percentage of those amounts (usually 10%).
Let’s say your cargo is worth $20,000, and shipping sets you back $3,000. Your insurance? It covers a total of $25,300.
Cargo value: $20,000
Shipping cost: $3,000
Total cost incurred: $20,000 + $3,000 = $23,000
Insurance coverage: $23,000 + 10% of total cost incurred = $25,300
For high-value cargo, consider opting for “all-risks” coverage, as it provides broader protection against various perils. Also, explore options like increased limits and excess cargo insurance.
Unicargo offers comprehensive cargo insurance covering loss, damage, or theft at a small percentage of your goods’ value. Our experts can assist you in choosing the right coverage, considering your cargo’s value, transport risks, and budget for the optimal solution.
4. Destination and Route
The insurance rates can be influenced by the chosen route and the shipment’s destination. For instance, war risk insurance premiums increased for Red Sea voyages following three vessel attacks on December 3rd.
Some countries have stringent import regulations, mandating specific types of insurance. Moreover, certain routes, particularly those with higher piracy or war risks, may necessitate additional coverage.
So, research the insurance requirements of your destination country and adjust your coverage accordingly. Be mindful of potential risks on your chosen route and contemplate extra coverage for high-risk areas.
5. Duration of Transit
Make sure your insurance period matches the expected duration of your shipment to avoid coverage gaps and ensure protection throughout the entire journey. Short-term cargo insurance policies offer coverage for a specific term, usually ranging from a few days to a few years.
On the contrary, long-term insurance policies provide coverage for an extended period, potentially spanning several decades or a lifetime. For infrequent shippers, shipment-by-shipment coverage suffices, while those shipping year-round find annual coverage more cost-effective.
How to Obtain Cargo Insurance?
After considering the factors when choosing cargo insurance, the next step is to obtain it. This involves understanding your insurance needs, selecting a reliable provider, and familiarizing yourself with essential documentation. Here’s a lowdown:
1. Know Your Insurance Needs
Tailor your insurance to different cargo types based on their value, fragility, and susceptibility to damage. An annual policy is advantageous if you’re a frequent shipper (occasional shippers may opt for single-trip coverage).
Also, assess specific sea, air, and land transport risks, such as weather events, piracy, and political unrest along your chosen route. While cost matters, it shouldn’t be the sole consideration. The cheapest policy may lack the necessary coverage.
2. Choose a Reliable Insurance Provider
Look for a trustworthy insurance provider. Evaluate their market reputation and track record in claims handling and customer service. Confirm their financial stability by checking independent agency ratings. Ensure they offer precise coverage for your cargo and have experience in your industry, such as Unicargo.
As a digital freight forwarder that provides top-notch insurance services to clients, we understand the associated risks with shipping cargo. By collaborating with top global insurance companies, we ensure efficient and effective claims resolution, delivering the best outcomes for our clients.
3. Familiarize with Insurance Documentation
Carefully review covered risks, exclusions, liability limits, and claim procedures in your insurance policy. Seek clarification from your insurer on specific terms and clauses if needed.
Keep copies of all insurance documents, including the policy, endorsements, certificates, and correspondence. Understand the claim process, required documents, and the filing timeline. Stay informed and prepared for any potential claims.
4. Select Suitable Coverage Type
Select the right coverage type, such as “all-risks,” named perils, or specific risk covers that suit your cargo. Determine suitable liability limits, indicating the maximum payout for a covered loss. Explore additional coverage options like war risk, strikes and riots, and extended warehouse storage coverage based on your specific requirements.
Best Practices for Dealing with Cargo Insurance Claims
When dealing with cargo insurance, follow best practices for the preparation and prevention of claims and for filing them. From understanding policy details to prompt reporting and effective documentation, these practices ensure your business can navigate the complexities of claims confidently and efficiently. Here’s how:
Preparation & Prevention
- Know Your Policy – Understand coverage, exclusions, claim procedures, and deadlines.
- Document Everything – Keep records of invoices, packing lists, bills of lading, and communications.
- Package Properly – Ensure goods are packaged for specific transportation risks.
- Choose Reliable Partners – Work with carriers prioritizing cargo safety and industry best practices.
- Track Your Shipment – Use tracking tools to monitor shipment location and status.
- Act Promptly – Timely reporting is crucial for claim validity.
- Be Honest and Accurate – Provide truthful and accurate information.
- Seek Professional Help – Consult with cargo insurance experts like Unicargo. We get that each business has its own shipping needs. Thus, we offer fully customized policies to match your budget and the protection you want.
- Maintain Clear Communication – Keep the insurers informed and respond promptly to inquiries.
File a Claim
- Notify Your Carrier – Report loss or damage immediately to your carrier upon discovery. Make sure to include the carrier’s Pro number, shipper number, vehicle number, origin date, and delivery date. Commodity description should also be noted, and for the value of freight, refer to the bill of lading.
Specify the type of loss, indicating whether the goods were damaged, the percentage of damaged freight, its valuation, or if the cargo was missing upon delivery. Additionally, provide details of the freight item by item type rather than as a collective whole.
- Gather Evidence – Collect relevant documents, photos, police reports, videos, surveyor reports, and communication. When filing a freight claim, it’s essential to provide the shipper and receiver names and addresses and list all stop-off locations for loading or unloading. Include details on the liability of freight charges, such as whether it was collected cash on delivery, or prepaid. Reference the bill of lading for any limitations on liability. Supporting documentation is also necessary for a comprehensive freight claim.
- Notify Your Insurer – To initiate your insurance claim, reach out to your insurance provider and complete the official claim form they’ll provide upon request. Alternatively, you can submit the claim online via their website or app. Ensure you furnish the exact details as in your carrier notice and any additional information your insurance provider requires.
- Deliver Claim to Your Carrier – Freight claims need to reach the carrier within the contract-specified or legally defined timeframe, often nine months from the freight delivery date. The carrier must confirm the receipt date for timely claim processing, making delivery methods with confirmation crucial. Address the claim to the carrier’s claims manager, sending it to their home or corporate offices rather than a hub. Avoid delivering claims in person to a carrier or sending them with a driver.
- Cooperate with the Investigation – Work closely with both your insurance provider and the carrier during the claim process. They might request additional evidence like receipts, invoices, or repair estimates. Adjusters may contact you for goods inspection and valuation determination. Promptly and honestly respond to any requests or inquiries from your insurance provider or carrier.
- Negotiate the Settlement – Engage in negotiations with both your insurance provider and the carrier to determine the compensation for your loss or damage. The insurance provider will cover valid claims approved according to policy terms, while the carrier will be responsible for valid claims under their contract of carriage. If disputes arise on payment responsibilities, consider hiring a lawyer or mediator to assist in resolution.
3 Tips for Optimizing Cargo Insurance Coverage
Navigating the intricacies of cargo insurance involves more than securing coverage. It’s about optimizing it for evolving business needs.
Here are some tips to improve risk management, ensure alignment with regulatory demands, and reduce claim frequencies and severity.
1. Regularly Assessing and Updating Coverage Needs
As your business grows and undergoes changes, its risks evolve accordingly. Expanding into new markets or introducing new products can shift the risk profile, emphasizing the importance of regularly evaluating and updating cargo insurance coverage.
Therefore, you’ll need to adjust to accommodate changes in cargo value, transportation routes, or regulatory demands. Periodic reviews, preferably conducted annually, ensure that insurance remains relevant and adequate. This proactive approach helps identify potential coverage gaps or unnecessary premiums, allowing policy adjustments as needed.
2. Implementing Risk Management Strategies
Implementing risk mitigation practices like secure storage, proper packing, and safe transportation can lower the chances of cargo issues. These measures work hand-in-hand with cargo insurance, reducing the frequency and severity of potential claims. This, in turn, leads to lower insurance premiums and increased negotiating power with insurers.
3. Building Strong Relationships with Logistics Partners
Fostering robust relationships with your logistics partner is crucial for effective risk management. Collaborative efforts enable improved communication, a shared awareness of risks, and coordinated strategies to mitigate them.
Additionally, strong partnerships with logistics providers enhance overall risk management and insurance strategies. These alliances offer valuable insights into potential risks and contribute to the development of customized insurance solutions.
FAQ: Cargo Insurance
How Much Is $100,000 in Cargo Insurance?
Cargo insurance costs can widely differ, influenced by factors like cargo type, transportation mode, and destination. For example, marine cargo insurance rates may vary from 0.2 to two percent of the goods’ total value.
So, for a policy covering $100,000, the annual cost could range from $200 to $2,000. In land transportation, a motor truck cargo insurance policy with a $100,000 limit might cost between $400 and $600 per year.
How Much Does Cargo Insurance Cost?
Cargo insurance costs vary based on goods type, transportation mode, coverage limits, and deductibles. A basic way to calculate insured value is to add the invoice value and freight cost plus 10% for additional expenses. On average, marine cargo can cost 0.5% of total cargo value; e.g., $15,000 cargo may cost around $751.
On the other hand, air cargo insurance is relatively expensive, averaging 50 cents per pound or up to $100,000 per shipment. Land transport insurance ranges from $400-$1,800 annually or $35-$150 monthly for standalone policies. Moreover, owner-operator truckers might pay $350-$620 per month for a $1M cargo insurance policy.
Is Cargo Insurance a Requirement?
Is freight insurance necessary? While not always obligatory by law, cargo insurance is highly recommended for all shippers dealing with valuable or delicate items. It is especially vital when venturing into unfamiliar routes or with a new carrier. Several international agreements also mandate a certain level of liability coverage for cargo transport.
Additionally, certain countries may demand proof of cargo insurance from importers before permitting goods entry across their borders. In specific industries, such as household goods transportation across US state lines, cargo insurance is legally mandated.
What Is the Standard Cargo Liability?
The standard cargo liability refers to the maximum amount of compensation that a carrier (such as a shipping company or freight carrier) is legally responsible for in case of loss, damage, or delay to the goods being transported. This liability is typically outlined in contracts, bills of lading, or other shipping documents.
Are Container Ships Insured?
Yes, container ships are insured, and it’s a mandatory requirement under various international conventions. These conventions stipulate that ship owners must have liability insurance to address potential claims related to cargo damage, passenger or crew injuries, and environmental pollution.
Conclusion
International shipping is unpredictable, with the risk of shipment damage or loss looming all the time. Therefore, whether you’re navigating the complexities of global trade or safeguarding your investments during growth, cutting corners on cargo insurance is a big no-no.
That’s a shortcut to jeopardizing your cash flow, stunting ROI, and dealing with filing claims with clueless insurers. With Unicargo, we team up with the best global insurance companies, providing top-notch results for our clients. No need to become a trade expert—leave that to us.
We have the know-how to handle claims hassle-free, ensuring a speedy payout. Got unique shipping needs? Our custom-tailored cargo insurance will fit your budget, protecting your precious cargo. No claim hassle either – our team handles it all until you get your compensation.
And if cargo insurance is a must, our Importer of Record service takes the legal load off your shoulders. We handle customs, permits, and compliance, leaving you worry-free. Let’s chat about securing your business – Contact Us today!
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