Despite the cargo being a necessity, not a lot of people are aware about cargo insurance. If you have been in the import and export business for long, by this time you should be having a cargo insurance. The lack of having an insurance can eventually prove to be harmful in the long run. As a result, you should be aware of cargo insurance.
What is cargo insurance?
The movement of cargo from one place to another has a lot of risk involved, mostly due to theft, damage and non-delivery. Cargo shipment has been one of the most popular trends of sending one item from another. Over time, cargoes have come a long way and this has eventually made the transfer of equipment easy and efficient.
If your business is dealing with cargo, you should ensure to have a cargo. Moreover, it comes with interest as well. If you feel that the risk of cargo theft or damage is increasing, having an insurance can eventually be helpful in the long time. Getting cargo insurance will offer protection to your items at the time of your equipment loss.
Types of cargo insurance
Cargo insurance is held to be liable for domestic as well as international transport. Moreover, it is necessary to take care of the standardized and poor control to avoid varying nature of states and countries. Some of the prominent types of cargo insurance includes the following
Lang Cargo Insurance: Such an insurance would provide coverage for most of the transportation on land. The coverage includes that of theft, collision damage and more. It is usually applicable for domestic and international borders.
Marine Cargo Insurance: This insurance provides coverage for transportation either on land or air. It offers coverage for piracy, damage due to loading or unloading, and other problems. Usually marine cargo insurance is valid for international transportation. The Marine cargo insurance is further divided into different policies such as
- Open Cover Cargo Policy
- Specific Cargo Policies
- Contingency Insurance Policy
Should you get Cargo Insurance?
ClearitUSA FBA recommends getting a cargo insurance for the shipment of your products. Whenever you are shipping goods, you should be having a cargo insurance to offer protection to your shipment products. You should be taking all the factors into consideration such as what would happen if the cargo is damaged or lost, or what would happen if the cargo gets stolen? Since your company is responsible for the shipment any kind of damage would eventually affect the company reputation.
