Cargo Insurance – Information about what it is
Cargo insurance is an insurance policy that protects you in the event off damage or loss to your cargo while being transported. It is meant to reimburse you in the event your cargo is lost or damaged. The goods listed on a cargo insurance policy would be covered while being transported via air, sea or land. This would include parcel post handled by courier companies.
Coverage Options
These are your coverage options to consider:
- Total loss cargo insurance – As the name indicates, this policy covers against total loss/catastrophe of entire shipment.
- All Risk – this type of insurance protects you against damage to your goods from physical, external cause including partial damage, catastrophe and theft.
What is the right amount of cargo insurance to purchase?
Traditionally, the coverage needed is based on a simple equation. The standard is to cover the invoice costs including freight plus a certain percentage above to cover your estimated profit. Usually, this amount will range from 15%-25%. The policy limit is typically the biggest shipment expected with the added freight plus the percentage of advance added.
One of the nice things about these shipment protection is that it can be purchased on an “as needed-pay as you go” basis. This is because all shipments can be reported monthly to a company and then invoiced at the completion of that specific month.
The best way to receive competitively priced cargo insurance quotes is to fill out the the simple form on cargoinsurance.com. We’ll search for the best matching policy for your needs, and will contact you with customized information. The price will be based on variables such as country of origin and destination, mode of transportation, type of container, and the type of merchandise being insured. Request a quick cargo insurance quote today.
