What is cargo insurance and why do you need coverage for the transportation of your goods?
It is the law for all carriers to provide a minimum amount of insurance. However, carrier liability provides very limited cargo insurance coverage and in an unforeseen event such as natural disasters or in-transit accidents, shippers can be prepared and request full freight insurance to protect their shipments for loss, theft or damage. For fully covered loss, we highly recommend comprehensive cargo insurance.
In recent years, there have been a number of unforeseen circumstances arising in the global transportation of goods.
Cargo Insurance is designed specifically to address your needs and protect the value of your cargo and cover legal liability. Cargo insurance claims are handled by a dedicated, professional team ensuring you have peace of mind when transporting your goods both domestically and internationally.
As your supply chain partner offering a full suite of logistics solutions including air freight, ocean freight and warehouse solutions, we offer all risk cargo insurance coverage that will ensure your freight is fully covered should there be any issue throughout the transportation of your freight shipments. In the case of loss or damage (from what are considered as acts of god or other), our comprehensive cargo insurance will cover the complete costs of your valuable cargo.
Learn more about the different types of liability associated with your insurance risk coverage, contact your sales representative today for more information on how we can help you with full cargo insurance coverage and for a list of terms and conditions if required. Buy insurance for your freight that suits your mode of transport.
The type of insurance you choose may play a critical role in your shipping process now and in the future and ensure you have peace of mind for any physical loss of your cargo. Carrier liability provides limited insurance coverage for your goods. Natural disasters, accidents and more can damage your cargo. Insuring your goods for loss, theft or damage whilst in transit will ensure you have cargo protection for your shipments. Reach our for an insurance quote today.
One of the great advantages of having cargo insurance protecting your shipments is that cargo insurance also covers General Average. If your shipment is included as part of a General Average declaration the insurance policy will cover the general average bond in order to have your cargo released. This frees your company from having to make any additional cash deposits.
General Averaging is a concept that is based in maritime tradition and is governed by a set of rules known as the York/ Antwerp Rules, revised in 1990. Participation is as per Terms and Conditions on the Ocean Contract of Carriage. General Average is declared by the vessel owner. A General Average Adjuster is chosen to administrate the process. Their initial job is to ensure all parties participate and a deposit is received from all cargo owners. The deposits are a proportional value of the invoice value that is roughly estimated to cover the cargo owner’s part of the General Average. As the full process can take a very long time to resolve, participation and funds must be ensured from the beginning.
For example, If one client, whose cargo is in an LCL container, has not submitted their General Average forms, then the whole container is detained. If the client fails to participate in General Average, their cargo can be considered abandoned and will result in clients having no financial recourse.
A General Average notice, with instructions and forms, is given to the carrier, who passes it to the cargo owner or via their freight forwarder. One of the great features of having cargo insurance protecting your shipments is that cargo insurance also covers General Average. If your shipment is included as part of a General Average declaration the insurance policy will cover the general average bond in order to have your cargo released. This frees your company from having to make any additional cash deposits.