Faced with the various dangers related to the transportation of goods, cargo insurance is needed, where its importance lies in releasing the company that transports the goods from all liability, i.e., under an evaluation, the events of the loss or theft are investigated to recover the amount of the loss. In addition, the client has a backup from the moment he delivers his merchandise to the transportation company until the delivery of the same.
Types of international cargo insurance
Some of the most frequently contracted types of international cargo insurance are the following: – Open policies: this policy provides coverage that usually starts the moment the cargo arrives to settle alongside the vessel. In addition, coverage may be extended to more than one means of transport, as long as it is necessary for the cargo to reach its destination. – Per voyage policies: this is one of the most common types of cargo insurance used by those who ship sporadically. This is because your coverage will only be active during the trip. – Floating policies: these are cargo insurances that are contracted to cover several transport operations of different cargoes. This is the best option for businessmen who ship internationally on a regular basis. It is common for logistics operators to have contracted this type of policies and pay monthly prices for them.
Importance of insuring your goods
The risk to the merchandise starts from the very moment the packing process begins. Hence the importance of insuring the merchandise to avoid economic losses. Insuring the merchandise from the beginning of the process is important, since any inconvenience in terms of delays, damages or loss, the company will have the peace of mind of receiving compensation according to what is stipulated in the insurance policy. It must also be specified if when using two or more types of transportation, the goods are insured to prevent a loss from occurring during transshipment. When dealing with foreign trade, the minimum requirements of each country must be clear in order to avoid legal sanctions.
Risks that a cargo insurance may face
Each transport insurance has different coverages and therefore the risks that can be faced by a cargo insurance are also different, for example: – Land transport: they must be protected against fire, lightning, collisions, explosions, overturning, derailment, bridge breakage, collapse, collapse, snatching, theft and robbery. – Maritime transportation: they must be protected against fire, lightning, collisions, explosions, bridge breakage, collapse, sinking and theft. – Air transport: they must be protected against fire, lightning, collisions, explosions, falls and theft.