Cargo insurance: why is it important?

Pubblished on: 12 September 2022
Category: About shipping

Even with modern-day vehicles being more reliable than they used to be in times long past, shipping goods, whether by sea, by air or by road, is still not immune to unforeseen accidents and delays, and here is where cargo insurance comes into play.

What is a cargo insurance?

A Cargo insurance is an essential service for those who are in the shipping and trading business and wish to receive a refund for any financial losses suffered in case of goods being damaged during transport or outright lost.

The additional cost of insuring your cargo may seem daunting, but accidents are more common than you might think. For this reason, we highlight the importance of insuring your cargo against all sorts of unpredictable events.

Determining responsibility

To obtain a refund from the carrier of goods that have been lost or damaged, one must prove beyond reasonable doubt that the carrier is responsible for the accident in the first place, and the investigation into such event can last up to 18 months.

Getting compensation for a financial loss brought on by an unforeseen complication, therefore, is not an easy process.

Another paramount reason to insure your cargo is to avoid costs you could face due to any unforeseen situations that might affect your cargo.

The importance of insuring your cargo

Plenty of shipments are completed without issue, but complications occur often enough that shipping without insurance may save you some money in the short term, but it will leave you exposed to the risk of much greater losses in the long term.

Because the nature of the shipping business is so unpredictable, you might be particularly interested in an all-risks coverage, a policy wherein your cargo is insured against loss arising from any unpredicted cause except the ones specifically excluded by the contract.

If you feel that it is in your best interest to have an expert by your side as you navigate your options for cargo insurance, we at Global Shipping will be glad to help you evaluate the solution that is best for your needs so you can rest easy in the knowledge that even if your goods are involved in an accident, you will be entitled to compensation for your loss.

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