There are many different types including shipping insurance, freight insurance, cargo insurance, moving insurance, transit insurance, and transport insurance. All of these terms are names for insurance that covers goods or merchandise against damage or loss while in transit from one location or another.
In other words, insurance covers the loss or damage of ships, cargo, terminals, and any transport or cargo by which property is transferred, acquired, or held between the points of origin and final destination. Sea Sapphire Group is working closely with all the major insurance companies in Iran in order to be able to give its customers the best advice, get the best prices and improve their safety and security for their shipments.
Sea Sapphire Group believes that properly insuring freight, in conjunction with good physical risk management, is an important way to manage the financial impact of loss or damage. A coverage should include options to insure from “warehouse to warehouse,” irrespective of the number of subcontractors involved, and covers common carrier limitations such as: “Acts of God,” terrorism, strikes, riots, and civil commotion risks.
- Subject to certain packing exclusions, this freight insurance policy pays regardless of which carrier is ultimately responsible for the loss or damage.
- Includes coverage for General Average. Without cargo insurance, this event can have a frustrating economic impact on your customers, as they will be responsible to put up a bond to have their cargo released even if it is not damaged.
- This freight insurance policy will cover the goods for the full value declared and will not be subject to the limitation of a carrier’s bill of lading.
- Protect your errors and omissions insurance from liability claims, as you are not absorbing the deductible applicable to each claim under your legal liability policy.
- With full direct damage freight insurance, the burden of proof of liability is waived and claims are handled directly between the insurer and the customer. Insurers then surrogate where possible.
So, Should You Request Cargo Insurance?
Now that we’ve explored what cargo insurance is, as well as how coverage works; hopefully, you realize its importance when shipping goods. If not, think of the consequences of not having cargo insurance. What would happen to your company if an entire shipment were lost? What if your shipment is being transported via container vessel and the ship sinks? Or, god forbid, a truck gets in an accident with your vety important freight? Your company is responsible for a share of the losses. How would that affect your bottom line?
Accidents happen; therefore, shippers need to request cargo insurance to protect their business when errors occur. If you want help on how to know if cargo insurance is for you, call us now!