Freight insurance is taken out to protect your goods. While carriers are required to provide shippers with freight insurance, this insurance is usually minimal. It is important to take out freight insurance on all your goods. Here’s why having freight insurance is important:
It covers damage and loss
Though it is unfortunate, due to the harsh conditions at which freight is transported, there is a high chance that your goods could arrive damaged. There are ways to prevent this from happening, such as specific packaging, but it is not a certainty that your goods won’t get damaged. Lost cargo is another factor that must be considered when shipping goods. Prepare for the worst by purchasing adequate freight insurance.
Protected from departure to arrival
Freight insurance provides protection from the departure of the goods to the moment that they arrive at their destination. There are different types of freight insurance options to suit your method of shipment, be it by air, rail, road or sea. Note that marine cargo insurance will not cover any land accidents that cause damage or loss of goods.
Not liable under general average
The general average law is applied to marine shipments only. Under this law, any lost goods that have not been insured cannot be claimed for. This law also allows the carrier company to share the costs of the damage, clean up and legal events with those shippers who have lost their goods. On top of that, your goods may not be released until the payment is made. Be safe and take out freight insurance.