| There are five (5) insurance options for | | | | cost?" "What is the deductible?" "What are |
| shippers to insure their cargo shipments. | | | | the exclusions and conditions of the |
| | | | coverage?" "At what point does the insurance |
| Deciding which option is the right one for a | | | | coverage cease to cover your cargo?" Do not |
| shipper is an important decision which should | | | | let the supplier make YOUR business |
| be carefully thought out and reviewed on a | | | | insurance decisions. Do not relinquish |
| regular basis. How you secure insurance for | | | | control! |
| your cargo can make a significant difference | | | | |
| in the cost of the protection and the terms | | | | (4) Occasional shippers can purchase a |
| of the coverage that you receive. Here is a | | | | Shipment Certificate. Although this is a more |
| brief discussion of those options with the | | | | expensive way to buy coverage, it may be to |
| key points of comparison: | | | | be the most economical and efficient method |
| | | | for the small shipper. |
| (1) Insurance can be obtained through a | | | | |
| freight forwarder or customs house broker. | | | | (5) BUY YOUR OWN "OPEN CARGO" INSURANCE |
| Most of these companies have an in-house | | | | POLICY! |
| ocean cargo policy that is made available to | | | | |
| their customers. This is a significant profit | | | | The cost of cargo insurance is small in |
| center for these companies due to the high | | | | comparison to the total cost of packing, |
| mark-up charged to the shipper. These "all | | | | handling, and shipping goods. Bypassing the |
| purpose rates" can be much higher than the | | | | middleman (freight forwarder, customs house |
| rates for your specific shipment. Despite | | | | broker, overseas supplier) can yield a huge |
| these issues, this is the preferred option | | | | savings in the cost of your shipping. You |
| for the small shipper with four or five | | | | will be the insured. You will know what you |
| shipments per year. Due to the minimum | | | | are getting. You will have the right coverage |
| premium required for an "Open Cargo" Policy, | | | | to meet your specific needs. Your interests |
| this may be a more economical way to purchase | | | | will be protected, not the middleman's |
| coverage. But if a shipper does enough | | | | interests. If you should have a claim, you |
| volume, the savings could be up to 50% of | | | | are the insured and the insurance company who |
| what he is currently paying. | | | | issued the policy has a vested interest in |
| | | | handling the claim promptly and fairly. Your |
| (2) Insurance could be secured through the | | | | shipments will be automatically protected |
| carrier shipping the cargo. Unfortunately, | | | | with no chance of failing to insure a |
| this makes the carrier the named insured, not | | | | shipment. You will have a single point of |
| the shipper. This protects the carrier not | | | | contact for all of your cargo issues rather |
| the shipper. If there is a loss, the shipper | | | | than having to deal with multiple coverages |
| will need to file a liability claim against | | | | with different terms of coverage from |
| the carrier and their insurance company. And | | | | different sources. You will be free of |
| the insurance company will seek to protect | | | | "GENERAL AVERAGE" claims. And if you don't |
| the interests of their client, the carrier, | | | | know what that means, you need to understand |
| not the shipper. | | | | this point before you have a major surprise. |
| | | | |
| (3) Overseas suppliers might provide the | | | | You know that you need cargo insurance or you |
| coverage for YOUR cargo. This arrangement | | | | will recover very little for damaged goods. |
| raises a number of significant questions. | | | | The question is, "Where are you going to get |
| "Will the coverage be placed with a U. S. | | | | it?" The answer is at M. Silver and |
| company, or will you have to collect on a | | | | Associates, Inc. |
| claim in a foreign company?" "What perils are | | | | |
| covered by the policy (All-Risk vs. Named)?" | | | | If you have a question about cargo insurance |
| "What language is the certificate written | | | | or your need for cargo insurance, contact our |
| in?" "Will you be paid in dollars or some | | | | cargo department by e-mail at To receive a |
| other currency?" "Is the cost of the | | | | cargo insurance quote, please download our |
| insurance passed on to you and if so, at what | | | | Open Cargo Insurance Questionnaire. |