Cargo insurance is a way of protecting products or goods from any physical damage or theft. It ensures the protection of the products from anything that might occur during the transportation of goods and protects the shipper against inevitable losses. The exportation of goods services is increasing worldwide as businesses can easily import or export their products to desired locations just by using a good shipping company. Cargo insurance plays an important role in the shipment of products and brings ensures the shipper from any accidental loss.

Shipping products can be a risky situation as sometimes the shipment is lost at sea or air because of a technical issue. Usually, it doesn’t happen, but to save your time and money, cargo insurance provides reimbursement if your cargo is lost or damaged and protects you from financial loss. It is not the law to use cargo Insurance if you are running a shipment agency, but when you have covered your shipment with cargo insurance you are no longer exposed to any risk such as thief and damage. In this article, we are going to discuss more on the benefits of cargo Insurance, its types, and more.

What are the benefits of Cargo Insurance?

There are many benefits of cargo insurance for shipment agencies. It covers the production of all the paths its transportation whether it is on the land, sea, and/or air. It protects from damages and losses due to external factors. Some of the benefits are highlighted below:

• Risk can occur at any time from the import or export to the customer’s satisfaction. Cargo insurance includes these risks through coverage in their policies. It includes all circumstances that might create a personal loss.
• Cargo insurance greatly reduces the chances of financial loss including if your shipment is damaged or lost.
• Your cash flow is protected from any unusual stoppage during product shipment.
• Insurance claiming is quick and easy and can be done with a simple procedure.
• It simplifies the whole system to quickly index any loss.
• Profits can be generated even if the shipment gets damaged or lost.

Types of cargo insurance

Cargo insurance varies depending upon the method of transportation. Here are some of the categories:

Land Cargo Insurance

If the shipment is moved by land transportation it falls under land cargo insurance. Mainly it can be done with trucks or small vans and it covers all the risks that might occur on the land such as product collision, theft, accident, etc. It is used for domestic cargo so the policy covers the products within the country boundaries.

Marine Cargo Insurance

This insurance deals with international shipping and covers all the damages of the products which can happen due to loading, unloading, and weather conditions. The shipment is done by the ocean so the chances of risk increase over land. Marine cargo insurance covers all the risks of international shipping.

Types of coverage

Single Coverage

This coverage is best for the dealer who infrequently ships items, as the policy covers insurance on a per shipment basis.

Open Coverage

This is a single policy that covers all the shipments within a year and can be multiple or single.

All risk

This covers all the frequent causes of damage or loss of shipment and includes natural disasters, war, riots, or customer rejection.