Any client or customer shipping goods of any kind will face risks on a daily basis. However, cargo insurance can reduce the chances of potential loss from all the risks and hazards. Cargo insurance will cover goods throughout the entire supply chain. When you have cargo insurance, the customer or client will have control over how much the goods are valued.
It will not matter what transportation provider a customer chooses to use, cargo insurance will provide a customer with the peace of mind that is needed every time goods are transported. If sudden damage or distress occurs, or if a malfunction takes place along the way, the value of the goods that did not make it to its destination will be covered.
Cargo insurance covers goods that are being transported via road, air, water, rail, registered post parcel, and courier. Although this type of insurance is known as an all risk coverage, there may still be some confusion about what this actually means. When you have a cargo insurance policy, you will receive protection for the following:
- Improper packing
- Rejection at customs
- Employee dishonesty
- Failure to pay or collect
- Failure to provide notification of loss
- Cargo abandonment
What if an accident, theft, or malfunction takes place and there is no cargo insurance policy? If this happens, the customer will have to depend on the coverage that is provided by the limited liability policy. Generally, carrier liability will only cover up to a certain dollar amount. Each carrier is required to have limited liability coverage, but this type of coverage will not always cover the goods that have been damaged.
If your business needs to send goods that have a worth of over $100,000 and there is no cargo insurance, less than $1,000 of that value will be covered. If you truly want to secure your goods each time something is transported, we encourage you to invest in a comprehensive cargo insurance policy. If you are having trouble finding your way through the commercial or owner-operator truck insurance process, please do not hesitate to contact us at 888-225-2258 or 904-352-1803. We provide cargo insurance in Florida, Georgia, Texas, Illinois, Iowa, Nebraska, Tennessee, North Carolina & South Carolina.