Tag Archives: freight insurance

Freight insurance

Supply Chain Agents Who Need Insurance

One shipment of goods can go through many hands over the course of its route from manufacturer to the merchandiser. While the goods may be insured for liability, if a handler mis-stores or mis-ships the freight in the process, the carrier, warehousing agent or broker could be held liable. Freight insurance is available for each agent involved in the process, including:

  • Companies that have a global supply chain, whether you’re an importer, exporter, distributor, wholesaler or manufacturer
  • Third-Party Logistic Providers (3PLs), brokers, rail transporters, consolidators, air cargo agents and freight carriers
  • Customs brokers who could make a mistake in the shipping process
  • Freight forwarders and firms that specialize in storage of merchandise on behalf of shippers

Discuss your liability risks with your insurance agent to have a financial protection that manages your exposure, without paying for policies that don’t cover your business. Specialized insurance, loss prevention, and risk management benefits your business and ensures that you can keep up with the industry. Although it’s easier than ever to track shipments through technology, that doesn’t protect your business against loss.

The transportation industry is rapidly changing and emerging to meet new technologies, tougher regulations and a demanding clientele. Work with your insurance underwriter to have the protection you need. Insurance is changing to meets the demands of the industry.

freight insurance

Is Your Cargo Insured?

When you are shipping freight, it’s important to protect it against physical loss or damage as it travels through the global supply chain. A comprehensive freight insurance plan covers your cargo from door to door, regardless of where it travels.

Purchasing Coverage

Freight insurance, also called cargo insurance, can be purchased through the shipper or from a third party insurance company. This coverage exceeds the freight company’s carrier liability coverage. You can purchase protection through:

  • Online insurance brokers
  • Business insurance
  • Credit card insurance

Typically, insurable goods include personal effects, automobiles, household items, artwork, and antiques. Merchandise shipped with invoice can be insured for their stated value. Otherwise, items are valued and insured for fair market value or actual cash value, which is the replacement cost minus depreciation.

Check Your Shipment

When your shipment arrives, check it for visible signs of damage. If you experience a loss, contact your freight insurance or credit card company to file a claim. Please note that you are only covered for the cost of repairs. This does not include lost time, labor charges and shipping costs.

Before you ship goods, take the time to make sure your cargo is covered for loss or damage. A few minutes of due diligence may save you a significant hassle in the long run.