Cargo insurance: Is it worth it, and what types are available?
Cargo insurance during transit minimizes financial losses in situations specified in the contract and guarantees compensation for damages. EA LOGISTIC, as a transport and logistics company, fully understands its responsibility to clients and therefore insures every shipment with reputable insurance providers to protect both the cargo and its own assets.
Types of cargo insurance
The terms of the insurance policy, depending on its category, may include the following types of cargo insurance:
1. All-risk coverage. Provides protection against all losses or damages, regardless of the cause.
2. Partial coverage. Provides compensation for losses in specific situations.
3. Special coverage. Designed for particular categories of cargo, their specific characteristics, and risks associated with force majeure events.
In international freight forwarding, the logistics provider is responsible for the cargo from the moment it is accepted until it is delivered to the consignee. However, it is important to distinguish between cargo insurance and liability insurance for the transportation process itself. The scope of such liability is strictly defined. To ensure full insurance coverage of goods in transit, it is necessary not only to have comprehensive insurance but also to extend it to include loading and unloading operations, planned storage during transit, and domestic consolidation shipments.
Key aspects of cargo insurance
To ensure cargo insurance is properly arranged, it’s essential to understand the main provisions that should be considered when signing the contract:
– Cargo insurance during transport takes effect once the carrier accepts the goods at the point of origin.
– The cargo can be insured either by the carrier or the shipper. In the latter case, it typically covers the goods only.
– Cargo insurance in international transportation involves insurance cases. They include traffic accidents, loss or damage to cargo during transportation, during handling operations, customs clearance of goods with possible seizure or confiscation, and so on.
In addition, domestic cargo insurance may also cover third-party liability.