As a carrier, you must legally carry at least the lowest level of insurance, and this can be referred to as carrier liability. However, carrying the lowest level of insurance will give you very little coverage. By law, a carrier will not be held responsible for losses that were caused by natural disasters or another phenomenon they had no control over. Thankfully, you have the option of purchasing cargo insurance so you will be protected against damages, loss, and theft. Altogether, the goods you are carrying while they are in transit and while they are being stored will be covered.
Cargo insurance will reduce your chances of suffering from a financial loss. Unfortunately, so many shippers place their goods at risk by not making the decision to get cargo insurance. As a result, many of them have suffered significant loss from storing and transporting cargo without getting insurance. There are several reasons why you should get cargo insurance, and some of those reasons are listed below:
Provide You With Theft Coverage
We are almost in the middle of peak cargo theft season, and there are several ways cargo theft can happen. Cargo theft can happen through fake pickups and fake identities. Cargo theft can also happen through piracy, especially when it comes to international shipping. We are sure you have probably read stories about cargo theft and the financial losses that were suffered. Generally, a lower amount will be set for theft coverage compared to the amount of the cargo limit, but the deductible will be higher.
Protection Against Cargo Damage
While cargo theft and cargo loss continue to be common occurrences, we cannot forget about cargo damage. There are different types of cargo claims being submitted on a yearly basis, and the majority of those claims are physical damage claims. Some of the other cargo damage claims that are submitted are for lost containers, shortages, and temperature-related damages. Cargo damage happens all the time, and it is probably because there are so many ways for cargo damage to happen.
Carrier Liability Coverage
While carriers may not be held responsible for every cause of loss that happens in transit, there will be times when carriers will be held liable. When a carrier is held liable for a loss or damage, carriers’ liability will provide limited protection. Unfortunately, many shippers will only be able to recover a small amount in return from the carrier. A shipper should not depend on the carrier to cover any loss or damage that may happen while the cargo is being shipped.
With the cargo theft rates rising and the chances for unexpected damage rising every day, we encourage you to make sure you have the right cargo insurance when you are storing and transporting goods. Damages, loss, and theft can happen to anyone at any given time. Will you be protected if it happens to you?
Contact us today for more information on cargo insurance. J.E.B. Insurance, LLC provides cargo insurance in Florida, Georgia, Iowa, Texas, Illinois, Tennessee, North Carolina, South Carolina & Nebraska.