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Cargo shipments are generally safe and secure, but as with unforeseen events, things can sometimes go wrong during the transport of goods. If you outsource the transportation of your products to a professional carrier or freight forwarder, you could be forgiven for believing that the carrier or forwarder is fully liable for any damage or loss. This is not the case.
Carriers and forwarders only have limited liability. If an unfortunate incident occurs, you may be faced with a long list of terms and conditions that are difficult for non-specialists to understand.
That’s why it helps to know the general principles, what the most common risks associated with goods transport are, and when it makes sense to arrange for cargo insurance.
What are the benefits of cargo insurance?
Cargo insurance reduces financial loss regardless of whether your goods get damaged or not. Some of the common benefits include:
All risk coverage – Cargo insurance protects against the significant loss or damage caused by external factors such as theft, vermin or damage by improper handling.
General coverage – This is the standard insurance policy for maritime shipments covering partial losses to the policyholder.
Warehouse-to-warehouse coverage – As the term signifies, it protects against loss or damages caused while your cargo is being transported to and from warehouses.
Peace-of-mind – Securing your investment gives you a sense of peace, which means you can sit back and relax knowing your cargo is safe.
Legend Shipping Service is an International Freight Forwarder with a hands-on approach towards our customers’ needs. Our key objective is to master trouble-free movement of goods in and out of the World Wide on behalf of the many importers and exporters whom we represent.