What is the Meaning of Cargo Insurance?

In shipping, there are risks involved, including loss and theft of your items, even damage during shipment, which might result in highly valued losses. On the other hand, cargo insurance protects your investment from these risks.

Not every shipping incident is avoidable. Weather conditions, accidents, and human errors are unpredictable. With insurance, you are covered against these unforeseeable events. It provides a financial safety net for your business.

We let cargo insurance work for you much like any other insurance: by paying a premium based on the value and risks tied to your goods, you gain essential protection. In the event of an unexpected happening, you can file a claim, and after a quick evaluation, you are reimbursed for any loss or damage.

This insurance coverage can be tailor-made to different stages of transit, depending on the demand and value of your item. For instance, you can opt for all-risk coverage if you need the highest form of security. If you are more concerned about a small number of risks, you could choose a cover choice with less coverage.

Various forms of cargo insurance are used in logistics to protect goods. Some of these are more specialised, like Free of Particular Average (FPA) Insurance, which only insures against losses over a specific threshold, while others are more general, like All-Risk Insurance, which, for the longest protection, covers nearly every kind of damage or loss.

Another type is General Average Insurance. This applies when the vessel faces danger and sacrifices or expenses are shared. Lastly, Named Perils Insurance covers specific risks listed in the policy. Each type meets different shipping needs.

Choosing the right insurance depends on your shipping needs, so you need to determine the value of your goods and the risks involved. Consider the places your cargo will travel through, as each route has unique risks.