Why do you need a Cargo Insurance on your freight?
Cargo Insurance is underrated
Do not underestimate the significant importance of having a cargo insurance on your international freight. The mistake of not having cargo insurance is a bigger risk and gamble than your health and auto insurance. This is one time shot and damages and loss are very common in international shipping.
When you are importing on FOB Transaction, your shipper is only responsible up to getting your goods on board the vessel, or Air. You bear the risk beyond that point with whatever happens to your cargo, and you could have a total loss of shipment and your investment.
Cargo insurance is a forgotten instrument in shipping world.
Insuring your freight for protection from damages and loss is underrated, because in fact most new importers do not realize that you are responsible for protecting your cargo thinking that carrier liability will take care of your shipment if anything goes wrong.
Carriers limit their liability in the event of a loss, and in fact, no carrier is obligated to pay for a loss that occurs beyond their control and is not directly caused by their negligence.
Most unaware importers will bark at their forwarding agent to in hope to blame someone to get paid for the damages, or loss; however it does not work this way. Importer must first have cargo insured to make any progress to settle any claim with any other parties.
Cargo Insurance is a Protection from loss for your international freight
You want to minimize the risks associated with transit should damage occur, or any type of loss during the course of transportation.
Insuring your cargo against physical loss or damage is a very simple and inexpensive process that it is highly recommended that you insure your valuable cargo.
We often receives the goods from overseas with crashed, or open and exposed goods with visible damages, and minute you find out there’s loss and damages, you contact your customs broker, and your broker can file a preliminary claim with parties involved in transit and handling the cargo, if you can prove your goods are damaged or have loss when received. As a standard rule, when damage or loss is found, surveyor for the insurance holder must be contacted for physical inspection.
You must file an exception report upon receiving goods when damage is visible; your broker can back trace your shipment and find if there are other exception filed by anyone handled your goods.
You can easily place cargo insurance on your inbound, or outbound cargo by requesting it with your freight forwarder, or customs broker, or you have an option to have your supplier insure your cargo based on the term of transaction as C&I and CIF so that you will be at ease when something goes wrong.
To obtain your cargo insurance premium, Insured value of the shipment is standardized based on invoice value of the shipment plus freight charges .so have this information along with where you are shipping from, or shipping to…
There is likely risk involved for insuring companies that certain many insurance companies have restrictions on insuring certain commodities and many countries of origins and destinations that having knowledge of the restriction beforehand will help you make a better business decision.