October 28, 2019

Cargo Insurance: What Value Does It Bring?

by Global Cargo in Sem categoria

Learn what cargo insurance is and why it is essential to provide security for your shipments

We all know that cargo transportation involves risks, accidents, theft, loss, etc. Getting cargo insurance along with the freight service is a way to alleviate the disruptions that these types of problems may cause. But most importantly, offering this type of service can bring security to your client.

Insurance can be purchased by the final customer. Some carriers include the insurance fee in their quotes, while others add it according to the characteristics of the cargo.

The decision as to which is the best cargo insurance to get will depend on a few important factors: load profile, whether fragile or more resilient, cargo value, type of commodity, whether manufactured or input, and whether there is a risk of combustion or erosion. A crucial factor to consider is the final destination. Destinations or routes with higher incidences of theft or accidents alter the value of the premium and the need to obtain insurance. More conservative profiles tend to obtain insurance in all respects, for example: vehicles, civil liability, E & O, etc. Therefore, knowing the characteristics of the client influences the level of necessity of obtaining insurance.

It is clear that regardless of the type of insurance chosen, either by your company or your client, the insurance contract must always be made through the service provider, transport provider, or your reliable broker.

One must always make the choice of cargo insurance in the most rational way possible, thus avoiding raising the freight price unnecessarily. Focus on choosing the right insurance company and broker, who will provide assistance with the most appropriate policy profile to fit the needs of your cargo.  For that reason, it is so important that you can count on a trusted and experienced logistics international partner. We are here to support you with knowledge and expertise.

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