To be a leader in global commerce, Cargo Shipping Insurance is a business necessity. From jewelers to wineries, businesses today that regularly ship goods need protection for lost or damaged items. Even the most careful and conscientious exporters and enterprises can have accidents when it comes to an international shipment.
Problems can crop up during loading or unloading, or at any time throughout the movement of the inventory. When issues arise, Shipping Insurance is vital. As important as it is, many businesses find the world of insurance confusing and complicated, but it doesn’t have to be. Here we will discuss the basics of insuring your cargo, and what types of companies can benefit from working with Cargo Insurance companies.
Carrier Liability or Cargo Shipping Insurance?
- Carrier Liability is minimal insurance often included in a bill of lading the carrier offers when you ship your freight. The problem is Carrier Liability Insurance coverage is usually not enough to cover the value of the cargo you’re shipping.
- Cargo Insurance is purchased through a third party unrelated to the cargo carrier and protects the business by helping absorb the cost of damaged freight.
Even if a business owner can show the carrier caused the damage in transit, the chances of recovery through Carrier Liability are slim. 10% to 15% of shipments, depending on the mode of transportation, can be affected by these incidents. The majority relying on carrier liability or declared value means the difference is not fully understood. To truly recover from the cost of damaged freight, business owners must have their own insurance to help if their load is lost or damaged.
Shipping fragile product requires even more careful attention. Products susceptible to loss or damage may not be adequately insured with the standard insurance a carrier provides. A carrier knows fragile products have a higher risk of damage. To minimize losses, they only offer minimal coverage for these products, if any at all. The only way to protect your business against damaged freight when it comes to your fragile products is with proper Cargo Shipping Insurance.
Businesses that deal with valuable products also require special Cargo Insurance cover. The maximum amount of insurance that comes from a carrier such as UPS or FedEx is most likely not enough to cover the costs if something happens to your high-value products.
For example, medical goods are costly and require specific insurance to protect their value. Cabrella offers customized solutions for Medical Logistics. Specialized medical equipment such as ventilators, respiratory equipment, and anesthesia devices costs tens of thousands of dollars and require the expertise of a professional Shipping Insurance provider.
What Could Go Wrong?
Cargo Shipping Insurance covers your products from damage during transit and helps to ensure your bottom line is protected should something go wrong.
Depending on the terms and conditions of the provider, the insurance coverage typically offers protection for items that are moved by water, road, rail, and air. Typical all-risk Cargo Shipping Insurance covers:
- Damage to cargo from incorrect packaging.
- Monetary damages arising from a customer’s rejection of a shipment.
- Damages from employee dishonesty such as theft or fraud.
- Insect or other types of infestations that can damage cargo.
- Protection from monetary loss if cargo is abandoned.
- Damage incurred due to natural disasters.
Shipping goods and products is risky. Lost goods or goods damaged in transit affect the business’ bottom line. The direct and indirect costs of in-transit damage are difficult to measure but are surely felt. Good insurance for your products is essential.
What Should you Look for in a Cargo Insurance Partner?
When selecting a Shipping Insurance partner to help protect your business, there are some key considerations. Here we will discuss a few advantages of choosing a professional shipping insurance company such as Cabrella.
Ease of Use
Cabrella offers state-of-the-art Shipping Insurance software. The program serves as a dashboard where you can track all your shipments and even file claims for lost or damaged shipments. Shipping Insurance software means you spend less time researching and managing your deliveries.
A good Cargo Insurance company provides coverage for variable value shipments as well as an assortment of commodities. Cabrella offers coverage for any type of commodity and has very few restrictions on international shipments, giving you the most flexibility when it comes to your cargo shipping needs.
Excellent Claims Service
If your business is involved in freight, you will likely deal with claims at some point. Select a Cargo Insurance partner that makes the claims process as simple as possible. With Cabrella, businesses can file their claims digitally and even receive notifications of high-risk shipping areas.
Good Cargo Insurance Makes Good Business Sense
Proper insurance is essential for businesses involved in moving goods. Whether your products are medical equipment, musical instruments, wine, or other spirits, Cabrella can help mitigate the risk of moving your goods around the world.
Get a quick quote from our insurance professionals at Cabrella and see how much you can save on cargo insurance today!