Are you shipping a container of valuable items? Are those items set to be shipped overseas? Imagine the voyage on a container ship. The waves and the weather will have an impact as the cargo is tossed and heaved. Damage can occur. With the standard terms and conditions provided by most freight forwarders and carriers, you cannot expect a great deal of reimbursement. It is imperative that you consider cargo insurance to cover possible damage to your times while in transit.
Understanding Cargo Insurance
In your day-to-day life, you probably don’t think twice about insuring your car, home, health, or business. Insurance is a natural part of life. You should also think about insuring your international shipment in much the same way. Cargo insurance provides peace of mind. Merchants have historically taken out marine insurance for hundreds of years – and they are still doing it today!
When picking cargo insurance, compare right from the freight forwarder to freight forwarder. Check out specialist cargo insurance companies. Typically, you’ll find that freight forwarders’ rates are usually the best.
Consider what type of coverage you need. You’ll encounter many choices. Cargo insurance offers coverages clauses that are very standardized. However, the differences in options can become technical quickly. Ideally, to make things easier, opt to purchase comprehensive cargo insurance.
Legal Cargo Insurance
Comprehensive cargo insurance does have limits. You’ll want to go over the sales contract to ensure that it is well-drafted and covers your property rights, breach of contract and other major situations.
Weight the risks and responsibilities of the seller and buyer before you agree to an incoterm. An incoterm basically determines universal standard shipment terms and conditions that are going to be added to the sales contract.
Consider Delivered at Terminal (DAT) and other incoterms that have a C. In some cases, buyers end up paying because of a forwarder’s negligence.
Cardboard Coverage for Extra Security
Prevention is the best policy when shipping. Take the steps needed to prevent damage to your goods by making sure they are packaged well. Always double box fragile shipments. The extra box will add a nice cushion to the packaging and help protect from jostling and unwanted movement of the items. You might also want to wrap the box in bubble wrap and use peanuts for further security. Packaging makes a significant difference in ensuring your items are shipped safely.
Secure packing can also help with loss. Always clearly mark your packages so they are quickly identifiable. Remember, you need insurance not only against damage but also loss or theft. Never have any brand identification on shipping containers that can lure thieves. You do not want to attract unwanted attention to your boxes.
Route Coverage
A freight forwarder will take out cargo insurance and send you a copy of the policy. When the shipment is in transit, you can check the forwarder document to stay up to date and time stamps. If something should go wrong, you want to have access to all of the information so you can make a freight insurance claim.
If something should go wrong and you end up having to file a freight insurance claim, you’ll want to have copies of all pick orders and delivery notes. The freighter records how many times the items were passed on and the condition of each box at every state. The information will help the insurance company determine who is at fault and should pay for the damaged goods. A Bill of Lading number is a shared identifier that is used between shipment and insurance policy.
Conclusion
Freight insurance is not a luxury but a necessity. You should never forego it in an effort to save money or you might end up paying even more.
