What is cargo insurance?
Cargo insurance is an insurance for export, import and domestic transports. The insurance provides coverage for all goods and all forms of transport. Insurance of goods is an object insurance which is released in the event of a claim regardless of who caused the damage. The insurance, if nothing else has been agreed upon, normally provides coverage for the value of the goods, plus freight, plus 10% imaginary profit and covers the ordinary chain of transport. The agreed trade terms stipulates if the buyer or the seller are to effect an insurance.
What can be insured ?
Events that can occcur, not those that must occur.
Who can insure?
Those with legal and financial interest in the goods.
What does the insurance cover?
It covers damage arising out of an external cause.
What information do I need from my customer in order to sign a cargo insurance?
- Packaging - detailed description!
- Heavy lift?
- Vulnerable to theft/breakage?
- Sensitive parts/components?
- What can happen to the goods?
- Loaded together with? Re-loaded?
- Value of the goods - invoice value (new) market value (used)?
Why is cargo insurance needed?
There is a large risk of something unpredictable happening to the goods. Think about the consequences before they happen - let If P&C Insurance take the risk.
Remember: goods during transport are in an environment for which they are not intended.
- The goods can be damaged even if they are well packed and wrapped, they can disappear during handling, fall overboard in bad weather, be destroyed by fire and in addition be considerably delayed.
- he forwarding agents legal responsibility for action is limited and varies depending upon the type of transport being used.
- The forwarding agents liability (for fault) must be investigated and this can take time.
- Insurance of goods protects the customer from unpleasant surprises.
- To insure the goods often costs less than one-half percent - to not do so can cost more than one hundred percent.
- The premium can be budgeted - damages cant be. Both you and the customer receive quick claims adjusting from experienced personnel.
Take care of your customer
- Avoid discomfort in a possible dispute, maintain good relations with the customer.
- Compensation is received immediately from the insurer (no time consuming question of fault investigation).
- Premiums can be budgeted, but not damages and possible losses.
Cargo insurance terms and conditions
Conditions, clauses and domestic conditions