Why Cargo Insurance is Essential!
Transporting goods involves risks. Whether by land, sea, or air, it’s vital to ensure your cargo is protected. That’s where Amico Freight Solutions steps in. We guide you through the maze of cargo insurance, ensuring your shipments get the protection they deserve.
Benefits of Cargo Insurance
- Peace of Mind: Know that your shipments are covered from unforeseen damages or losses.
- Financial Security: Don’t bear the brunt of financial losses; let insurance handle it.
- Global Coverage: Whether it’s domestic or international, we’ve got solutions to help ensure you are covered.
What Does Cargo Insurance Cover?
While specific coverage can vary, standard cargo insurance typically offers protection against:
- Damage caused by accidents during transit
- Theft during any stage of transportation
- Natural disasters like hurricanes, earthquakes, and floods
- Damage due to mishandling, like dropping or improper stowage
Is coverage Optional?
Coverage options are tailored to your specific shipping needs. While cargo insurance is not mandatory, it is strongly advised for shippers.
Cargo Insurance Options
This is the most comprehensive form of cargo insurance and covers all risks of physical loss or damage from any external cause, regardless of the percentage of the value of the goods. Exceptions are typically standard exclusions like acts of war, contraband, or inherent vice (i.e., the natural decay of perishable goods).
This is more limited and only covers losses due to the perils specifically named in the policy, such as fire, collision, or sinking of the vessel. It won’t cover things like theft, mishandling, or non-delivery.
This is one of the most limited types of coverage. It usually only covers total losses, and partial losses are covered only if they are the result of the vessel sinking, burning, or colliding.
This coverage is more extensive than FPA but less so than all-risk. It covers partial and total losses sustained due to named perils, which often include natural disasters like earthquakes and floods.
This is a one-time policy that covers a single shipment and usually is taken out for the full value of the goods being shipped.
This is a policy that remains in effect for a specified period or until the limit of the policy is reached. Shipments are reported periodically, and premiums are charged accordingly.
This is taken out by the buyer or seller as a backup to the other party’s insurance, kicking in only if the other party’s coverage fails to pay out.
Though not a type of cargo insurance, the concept of General Average is important to understand. If goods are jettisoned to save a vessel, all parties share the loss. You may be required to make a financial contribution to recover your surviving cargo if you don’t have appropriate coverage.
These are usually optional coverages that protect against losses resulting from warlike actions, strikes, riots, or civil commotions.
This covers spoilage and other temperature-related losses for refrigerated or temperature-sensitive goods.
Disclaimer: Purchasing cargo insurance to cover loss is the shipper’s responsibility. Always ensure adequate coverage for your shipments. Before purchasing any insurance, it’s essential to understand your needs fully and read all policy documents carefully to know what is and isn’t covered. Always consider seeking advice from insurance professionals to ensure you choose the most appropriate coverage for your specific shipping needs.
Is Your Cargo Automatically Covered By the Freight Forwarder?
Not necessarily. Freight forwarders might have limited liability insurance, but it's often not sufficient for the full value of cargo. It's always best to get dedicated cargo insurance for comprehensive protection.
When and Why to File a Claim?
Claims can be filed when:
- Your goods arrive damaged and it's due to covered events.
- Your cargo is lost in transit.
- The delivery is delayed, causing financial loss (if covered by your policy).
Potential reasons for claims include natural disasters, vessel accidents, theft, or mishandling during loading/unloading.
Contact Amico Freight Solutions
Secure your goods and your peace of mind. Amico Freight Solutions is here to guide you every step of the way. Contact us today to find freight solutions designed with your business's financials in mind.