The meaning of cargo is to carry goods from one place to another on a ship, aircraft, or transportation of goods in bulk is called cargo. Every business starts with the purpose of profit and success. As long as everything is right and moving smoothly, you are in good shape, but as famous wordings are that ship in harbor is safe, but that is not what ships are for similarly business seems easy and smooth going but it is not that simple. In the case of cargo, stuff happens, so Cargo Insurance is a must. This insurance is also called freight insurance, marine insurance, or logistics insurance. Its purpose is to protect your goods against exposure and risk. It is an essential factor if you are carrying goods for business or any other purpose.
What is cargo insurance? Is it necessary to have it?
This type of insurance is a must for goods carried from one place to another in bulk. Cargo insurance comes in handing from protecting the goods of carriers from theft and damage. It protects the products such as electronics, toys, and many more items that carriers carry with them. It can provide protection in both domestic and international travelling. It would be best if you bought cargo insurance with full coverage.
Marine Cargo Insurance
It is the type of cargo insurance that protects your consignment from loss of any kind during transportation. This insurance is for international shipments. And gives you coverage from damages at the time of loading and unloading, weather, piracy, and similar type of risks
This insurance can be both permanent and renewable. It depends upon your choice; if you do not travel regularly, you can choose renewable cargo insurance; otherwise, permanent insurance can be a good idea.
What can it be insured under an ordinary Insurance policy?
Three things can not be insured under ordinary Cargo Insurance.
Some can permit this but with exceptional conditions.
What does a policy cover, and what not?
It provides coverage from all the external factor that can cause damage, such as
- Damages due to inappropriate packaging
- Damages due to heavy weather (sinking, derailment)
- Damages due to collision
- Employee’s dishonesty
- Custom rejection
- Cargo abandonment
- Health Insurance
Some exclusions are also there, such as follow
- Improper or inadequate packing
- Abandonment of cargo
- Rejection by Customs or other governmental authorities
- Failure to pay or collect
- Inherent vice
Why is Cargo Insurance important?
Cargo insurance covers all types of physical damage or loss from external causes, but there are some exclusions. It covers damages as collision because of an external source deliberate destruction, improper stowage by ship owners, theft, jettison, train derailment, truck overturning, and acts of God (e.g., earthquake, lightning strike). If you are exporting your goods internationally, then you must have Cargo insurance. It can save you from losses and dire situations in your business and provide you with peace of mind.
How to Claim for Insurance amount?
First, you have to contact the company from which you have bought the policy. Then you have to fulfil all the claim requirements, and complete documentation will be needed with details. The fundamental question to ask while purchasing the insurance policy is that how long the claim take? This also tells about the nature of the insurance policy you are buying. All the procedure can take from three to nine months. Once the documentation is completed and all the investigation is finished, the process will move forward, and you will get your amount.
Some types of vessels that can transport good and can get Marine Cargo Insurance
- General cargo ships
- Bulk carriers
- Container ships
- Auto carriers
- Fishing vessels
- Oil industry vessels
- Passenger ships
- Ferry boats
- Specialized ships
Where to buy Marine Cargo Insurance
We have always heard that experience speaks. It also fits in this situation. You can buy your policy online. It is easier to buy Cargo Insurance online as this is a modern world with new technologies. But you have to choose a company after a complete check and your ease. Choose the policy that suits you more and makes you comfortable as it is your business and you know your needs better than others, so make sure that you are buying from the right person and policy with the right coverages for you. Check all the details and complete documentation. Check quotes from different companies and then choose what’s best. Always tries to trust a well-known source and buy from it. Check all the comments and reviews before buying, and then invest in buying your peace and comfort.