Cargo insurance provides protection against the risk of physical loss or damage to freight from any external cause during shipping, whether by land, sea or air.
We believe that properly insuring cargo, in conjunction with good physical risk management, is an important way to manage the financial impact of loss or damage. The insurance options open to our clients allows for them to insure cargo from “warehouse to warehouse,” irrespective of the number of subcontractors involved. You should note that -
Subject to certain packing exclusions, cargo insurance policies pay regardless of which carrier is ultimately responsible for the loss or damage.
· All Cargo insurance policies provide cover for General Average. Cargo owners will be responsible to put up a bond to have their cargo release even if it is not damaged if General Average is not covered under their policy.
· Normally, all Cargo Insurance policies will cover the goods in transit for the full value declared and will not be subject to the limitation of a carrier’s bill of lading.
· Cargo owners should note that carrier’s liability is calculated based on the weight of the shipment, and may be limited to a few hundred dollars. With a cargo Insurance policy in place the cargo owner can be fully protected.
· If a cargo owner purchases full Cargo Insurance clauses on his/her insurance policy, then the burden of proof of liability is waived and claims are handled directly between the insurer and the customer. Insurers then subrogate where possible.
Put simply, cargo insurance provides a cost-effective way of covering client’s cargo in transit for physical loss or damage to the same goods.