What is Cargo Insurance/Freight Insurance?
Cargo insurance provides protection against all risks of physical loss or damage to freight from any external cause during shipping, whether by land, sea or air.
CargoCover 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. Our coverage includes 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.
- If you are handling third party cargo, cargo insurance is a value added service that also helps you manage your cargo liability exposure, since our CargoCover solution does not subrogate against the party who arranged the cover.
- 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.
- Some carrier’s liability is calculated based on the weight of the shipment, and may be limited to a few hundred dollars. With CargoCover, your client is fully protected and you will not have a claim made against your liability insurance.
- 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 subrogate where possible.
Put simply, cargo insurance provides a cost effective way of covering your customer, as well as yourself for physical loss or damage to goods in transit. It provides added value to your customers and helps differentiate you from your competition.