When you need to send your merchandise quickly and safely and in large quantities, nothing beats shipping by rail. Railroad shipping is very popular for small and large shipments, both transcontinental and over long distances. Shipping by rail is not only cost effective but also environmentally sound, and is growing in popularity. However, shipping by rail can be tricky when it comes to getting insurance. This is because railroad insurance for rail shipments is different from other cargo insurance policies.

While shipping by rail often makes sense, it does not always get your goods to the customer or the retail location where it will be sold. So how do you make sure that your products are being protected on every leg of their trip, regardless of the method of transport?

First, do not assume that the railroad companies are offering the same coverage that a ship or trucking company would. The liability most railroads carry is limited to $25,000 for any damage to the goods of a single rail car. This will not be acceptable if your products are valued at a much higher rate. Do not make the mistake of thinking that your umbrella policy will extend to fully cover your belongings being shipped by rail.

When you are seeking insurance coverage for your rail shipments, carefully check over any insurance quote you receive. You may want to consider an Excess Coverage policy that can decrease your deductible while increasing your coverage. Obviously, this will be at an additional cost, but the cost for an Excess Coverage policy is far less than the cost of the cargo and the deductible of your umbrella coverage.

It is important to note that railroads are not legally required to carry insurance on their cargo at all in the United States. In addition, insurance laws vary state by state and railroad shipments typically cross state lines. It is a good idea to be well informed of the laws that govern each state your cargo will travel through.

When you are seeking insurance quotes, you need to know that the company providing the quotes is trustworthy. Start from there, and you are sure to get the best coverage! Use CargoInsurance.com and make a wise insurance decision.