- Personal Finance
Whether you need to transport goods and cargo via a truck or on a boat, it is important to have those items insured in case anything happens. While some would argue that insurance isn't necessary, when you end up losing cargo and you don't have insurance, you'll quickly realize how important cargo insurance really is. There are multiple types depending on your mode of transportation, and so I will talk about the similarities, and the differences, and why you should get cargo insurance coverage.
Some of the different types of cargo insurance that will be available to you is truck cargo insurance and marine cargo insurance depending on the mode of transportation. In some cases you may need both, so it'll be important to find an insurance company that does both kinds, if that is the case for you.
Truck Cargo Insurance
If you are having your cargo carried by a truck, then it would definitely be prudent to get insurance for that cargo. every company is obviously different when it comes to motor truck cargo insurance, but there are a lot of similarities. Sometimes it is important for the owner of the cargo to have insurance, but companies also insure the truckers as well. This helps to protect them from any liability for the damaged or lost freight. Often times cargo insurance price ranges from just $10,000 up to $100,000, and often times if your need is in excess of that, the companies can figure out a policy on a per situation basis. The type of cargo that you are carrying will determine the pricing structure for the policy.
Marine Cargo Insurance
There are many different things that can potential happen during shipment of cargo and container on a ship. The loading cranes could damage the containers, theft and piracy, weather damage, as well as potentially losing the cargo overboard or other marine disasters. All of these possible issues are exactly why you need marine cargo insurance. Your goods need to be protected, and if you are a company transporting goods this way, then you need to protect your company from these potential issues of loss. Marine cargo can be split into two separate categories, one being conventional cargo, and the other being specialized cargo. Specialized cargo is usually livestock or produce. If all you'll be doing is transporting livestock, then livestock cargo insurance would be a great option as well.
Scopes of Cargo Insurance
Depending on how much you're wanting to pay, you can insurance only parts of the cargo, or different kinds of cargo. You can even choose what types of damage/issues you would like to insure against. Often times damages or loss because of natural disasters such as earthquakes, lightning strikes, or even volcanic eruption are not insured.
Open Cargo Insurance Policies
Some cargo insurance policies are only for specific shipments, or specific cargo. This is good for some companies that don't do a lot of transportation, but if you're doing a lot, this can become quite hectic trying to make sure everything is insured. This is where an open cargo insurance policy comes in. This will keep all of the cargo that you're transporting insured as long as you continue to make the insurance payments. Usually, with this type of policy, you're able to talk directly with the insurance company for your claim, without having to deal with a middle man who costs you more money, and who may not be as efficient in handling matters as dealing directly with the company would be.
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