Home Page (opens in new tab)
- Insurance Services
- Auto, Home, and Personal Insurance
- Business Insurance
- Policy Service
Call Us Today (970) 223-5902
Transporting goods carries risks. Any number of things can go wrong with goods in transit. That is what makes cargo insurance so important. It can help protect the value of your goods against losses in transit by sea, air, or rail.
Cargo insurance provides protection against financial loss for cargo that is lost or damaged due to a covered event. These typically include natural disasters, piracy, acts of war, vehicle accidents, cargo abandonment, and customs rejection. Cargo insurance is not always automatically included for all shipped goods. Shippers and consignees can purchase policies from a variety of sources, including our experienced agents.
Like car insurance, cargo insurance protects you in case of the unexpected. Although it is not required, it is recommended to protect your goods from exposure to risk. Even when you can prove that a carrier is liable for damages, the limits of its liability may be extremely low. Without the right insurance coverage, you could lose a large portion of the value of your cargo. This type of insurance can help protect your business cash flow from unforeseen stoppages, allowing for profits to be generated.
There are mainly two categories of cargo insurance:
Different types of marine cargo insurance policies are available, depending on your shipping needs:
Open coverage policies cover freight for a specific period of time and may include multiple shipments under a single policy. This type of policy may be renewable after a shipment is delivered, or permanent, allowing for unlimited shipments within the term of the policy.
Single coverage policies cover cargo on a per shipment basis. This type of coverage may be suitable if you ship infrequently.
Contingency cargo insurance covers the seller in cases where the customer is responsible for insurance but refuses to accept goods that were damaged in transit.
Cargo insurance will not cover risks over which the shipper has significant control. Generally, cargo insurance policies exclude:
If your business ships freight, you need cargo insurance for protection against potential loss. Our knowledgeable agents can help you find the right cargo insurance coverage for your business circumstances at the best available rates.Filed Under: Business Insurance | Tagged With: Business Insurance, Cargo Insurance, Commercial Insurance