Cargo insurance covers all risks of physical loss of or damage to goods during transit, imports, exports and domestic carriage, including any incidental storage. Storage outside the ordinary course of transit can be added as an extension to a cargo insurance policy where both purchases and sales are covered. Terrorism cover is only given during transit, and war risks are only covered during sea or air carriage.
What does cargo insurance not cover? Consequential losses are not normally covered; but can sometimes be added, for example to cater for loss of market subsequent to insured loss of or damage to seasonal goods. Non-fortuitous losses are not covered under a cargo insurance policy.
Cargo Insurance Services
Marine Cargo Insurance
Loss or Damage to Goods during TransitAccidental loss or Damage to goods during transit Theft and Pilferage F ireC ollision, over tuning of carrying vehicles War, Riots, Strikes and civil commotion
Types of Cargo Insurance
Cargo insurance can be taken for international as well as domestic transportation. At the same time, this is difficult to standardize and control without the proper cooperation from countries and states due to the varying nature of this insurance. Under these variations, this insurance can be categorized into following classifications:
-Land Cargo Insurance
This insurance provides coverage for all the land transportations covering trucks and other small utility vehicles. The coverage aspects are theft, collusion damages and other related risks. This insurance is domestic in nature and normally, operates within the boundaries of the nation.
Marine Cargo Insurance
This insurance covers transportation carried our either in sea or by air. Here, means of transportation and goods are covered from damage due to cargo loading/unloading, weather contingencies, piracies, and other relevant issues. Mostly, this insurance covers international transportation. Under these insurances, there are some policies which can help you in understanding the concept of cargo insurance in a profound manner.
Cargo Policies Under these cargo policies, there are a couple of procedures through which we can comprehend the possibility of freight protection in a huge manner. These methodologies are:
Open Cover Cargo Policies :At the point when a protection holder chooses inclusion against various exchanges, by then the open spread cargo strategies get instituted. These strategies are divided into two classes that are
The renewable policy is required for a specific worth requiring renewal after it approaches termination. Mostly one-way trips are included in this option.
This policy can be drawn up for an anticipated time period permitting numerous shipments in that time frame.
Specific Cargo Policies :
When a supplier contacts an insurance company or a private broker for insurance of a specific delivery. These strategies are also named as voyage policies in light of the fact that only shipments are secured under them.
Contingency Insurance Policy:
In some cases, the customer is responsible for the insurance of the goods in case of loss or damage. When goods are supplied there are threats that they might get damaged during the transportation and intended customers refuse to accept them. Sometimes the customers don’t take this responsibility and avoid it. Under such conditions, the affected sellers can look for amendments with the assistance of the legitimate framework. This can cost them a lot of money and in some cases, they may not be able to win the case and face a huge loss. Thusly, sellers are encouraged to go for insurance which has an exceptionally less premium rate.