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In transit cargo insurance is something that not all shippers / consignees consider. You can these days insure your goods for a relatively low fee for the duration of their transit meaning that you can recover the bulk of your expenditure if anything does go wrong on route.
There are a few questions that we usually hear from clients regarding insuring their cargo. Hopefully the below will be of assistance.
A: No! If this were to be allowed then there would be too many disputes between insurance companies as to where damage / loss happened and who is responsible for paying out. Always insure goods from warehouse country of origin to warehouse country of destination. Your insurance company should be happy to do this.
A: Insurance policies will vary on exactly what they cover, however if you take out goods in transit insurance you will usually be covered for loss and damage. A claim for damage can be affected if goods are not packed suitably for the method of transport, so always make sure that your packers comply with industry standards. If a container is swept overboard, vessel sinks, aircraft crashes your goods should be covered. If your goods are dropped or damaged during loading your goods should be covered. However if your goods are affected by rust or mechanical derangement then you may find that this is not covered in your policy. Always check the terms / small print or ask the insurer / agent if unclear.
A: Any payment of a successful claim will be subject to the insurance company substantiating the value of the goods. So if you insure for way over real the value of the goods you may find that the pay out of a successful claim will be for considerably less money. As a general rule it is considered prudent to insure your goods for the price that you pay to the supplier (if you are the supplier the price you sell goods for), plus the shipping costs + 10%. As in many cases damage will only be noticed after final delivery you need to make sure you are covered for the shipping costs / duties etc. which you can not otherwise claim back.
A: Always try and insure your goods once sale of goods is completed and schedule for shipment is known. This means that in event of a cancelled order you wont have to cancel insurance etc. and also that you will have sufficient information for the insurers to complete Insurance Certificates etc. Some insurers will allow for goods to be insured once conveyance has departed but it is pertinent not to take this for granted and to get everything in order prior to vessel / flight departure where possible.
Your insurance company may offer Goods In Transit Insurance on a case by case or blanket policy. At Mannson Freight Services we can offer you door to door insurance between most areas globally. Please contact us via www.mannson.com for more information....