| Why do you need to buy cargo insurance? The plain | | | | carriers & moving companies. As a result, |
| answer is: You ought to buy cargo insurance for | | | | manufacturers and exporters turn to the cargo |
| peace of mind. The function of this type of insurance | | | | insurance brokers that meet the need for |
| is quite clear: It covers your commercial shipment or | | | | full-value-based insurance to protect your shipment. |
| personal property in case of accidents when | | | | Fortunately, finding a reliable freight insurance |
| transferred by vessel, truck, train or airplane. And | | | | company is not a problem. Search for an insurance |
| accidents can and do take place. During the | | | | underwriter rated A++ with AM Best and AAA with |
| nationwide transport or international shipping your | | | | Standard & Poor's (their maximum ratings). |
| cargo is exposed to possible damages & losses: | | | | These 2 companies are independent insurance rating |
| piracy, tough weather, acts of God or other | | | | providers who issue the financial effectiveness ratings |
| unexpected situations. It was designed to protect | | | | of all insurance companies. Established underwriters |
| the cargo owner's fiscal interests while the cargo is in | | | | can furnish the coverage for material loss or damage |
| transit from the seller to the buyer. It is a very vital, | | | | to cargo while in transit, either internationally or |
| but often left out aspect of the international | | | | domestically. You can obtain freight insurance |
| transaction or a simple household goods move. It | | | | coverage for any value from a humble $100 package |
| seems that people genuinely understand the grounds | | | | to million dollar cargoes. It doesn't matter who's |
| for insuring their personal residency, automobile and | | | | handling your shipment - you can get shipment |
| other valuables but tend to consider unnecessary | | | | insurance coverage for any common carrier. It's not |
| when it comes to insuring cargo shipment. | | | | unusual to save up to 50% compared to carrier |
| Did you know that when you move your commodity, | | | | insurance and up to 25% over traditional primary |
| vehicle, household goods by air, ocean or land with | | | | commodity insurance directly from the underwriter. |
| any transport carrier and damage or loss occurs, the | | | | You'll obtain your own consignment insurance policy |
| contingent shipment insurance they offer will pay you | | | | with the loss payable directly to you or whoever you |
| only… $0. That's not a great deal and by law | | | | select, unlike coverage of freight carriers in which |
| that's all they're expected to pay you, because | | | | they extend you under a blanket policy that |
| contingent insurance is completely subject to the | | | | encompasses everyone's shipment. Insurance policy |
| carrier's legal liability and their terms and conditions | | | | refunds you for de facto losses or the "Stated |
| (tariffs). You'll be able to purchase a broader | | | | Declared Value of the goods", whichever is less, |
| shipment insurance coverage with some carriers, but | | | | under the Terms & Conditions of the insurance |
| at very high costs and the coverage will still be | | | | you purchase. |
| bounded by their liability and tariffs and probably | | | | This brings us back to the statement about the |
| based on the item weight and not the value. With | | | | peace of mind: knowing that you won’t suffer |
| contingent insurance, you run a risk being postpaid | | | | any financial losses should anything happen to your |
| very little for your loss. What you need is primary | | | | overseas or state-to-state shipment and you |
| insurance coverage for all types of shipments, not | | | | don’t have to rely on the transport company to |
| the limited contingent type provided by freight | | | | cover for any accidents. |