Planes, Trains & Trucks: A Cargo Insurance Snapshot

You need to ship your cargo. Whether you are simply sending it across town or exporting it across the world, it is critical that your products get where they are going – and that they are protected along the way. With so many different shipping options available, it is important that you have all the information you need, including details about how to protect your goods with cargo insurance.

Cargo is defined as goods, products or materials carried by ship, truck or van, plane, or rail. Each method of transportation has its own benefits and cargo insurance requirements.

  • Shipping by sea – also called marine cargo – includes automobiles, break bulk, containers, and heavy lift cargo such like manufacturing equipment, large military equipment, and items such as heat exchangers or generators.
  • Shipping by air – airfreight – can include smaller pallets and packages, or even large containers called Unit Load Devices.
  • Shipping by train – rail freight – allows for the shipment of smaller pallet loads, as well as coal, steel, and even trash.
  • Shipping by truck or van covers elements of all of the above, and allows for the largest flexibility by location, but at the smallest volume.

If you need a quote for your cargo insurance, you need to have some very basic info available. You need to know what your cargo is, what the value of that cargo amounts to, how it will be packaged and protected for the trip. You also need to know the departure point and where it will be arriving. With this simple information, you can begin getting your quotes for cargo insurance.

When you are getting your cargo insurance quotes, you need to pay close attention to a few points. If you are seeking an “all risk” policy – basically, a policy that covers everything – do not assume that is enough. Even the best all risk policy usually includes a clause that states “except as otherwise provided.” Most exclusions are buried in the policy, in the section called “endorsements.” Read the language in the cargo policy choices before choosing. The last point to consider is that your cargo insurance policy covers the entire delivery – what is called “door to door” in cargo insurance terms. You do not want your cargo insurance policy to stop at the pier or the warehouse!

We hope that with this information, making a decision about your shipping needs and cargo insurance will be much simpler.

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