For those of you who regularly ship goods internationally, cargo insurance is a topic that regularly becomes part of the transportation discussion. In this article, we will try to explain what cargo insurance is, how it works, and when you need it.
Prevalence of Risk –
It is impossible to eliminate the risk of damaged or lost freight when shipping internationally. No matter how well secured and packaged, cargo can be inadvertently exposed to damage via weather, mechanical damage and theft. As an example, news reports regularly describe lost containers that have fallen off of ocean carriers during storms and rough seas.
While it impossible to totally eliminate the risks associated with international cargo transport, the correct usage of maritime insurance can help to insulate you from financial losses when unexpected events happen.
Cargo Insurance defined –
Marine cargo insurance is the industry standard for protecting goods in transit. It is important to know that cargo insurance is not an automatically applied part of the freight transport agreement. However, freight insurance is available through the insurance market via brokers, local agents and freight forwarders. Eagles Air & Sea has working agreements with independent cargo insurance providers who can offer a wide range of protection when shipping your goods with the Eagles team.
Do I have to buy insurance when shipping internationally?
There are no industry wide requirements for cargo insurance. Ocean and air freight carriers are liable for damage incurred as a result of negligence on their part, but the coverage is minimal and often difficult to assign blame for damage that could have happened at multiple points along the route. Many of the causes of damage, like accidents at sea, acts of God, or poorly packaged cargo are outside of the areas of responsibility of the carrier(s). for this and other reasons, it is always good to assume responsibility for insuring your cargo yourself or through your freight forwarder.
How can I find a dependable cargo insurance carrier?
One way to locate a dependable cargo insurance carrier is to ask your insurance agent that you are using for the rest of your personal or business activities
Another way is to shop on your own, comparing different providers as regarding their rates, length of time in business, and their history of resolving claims to the benefit of their clients.
A third way, and one that takes the time and bother out of insuring your cargo, is to use your freight forwarder to solicit and provide you with the right type of coverage. At Eagles air & Sea we have long running business relationships with well-respected cargo insurance companies that will provide safe, comprehensive and affordable cargo insurance tailored to your specific requirements.