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Freight Insurance - Insure Your Cargo With Mannson Freight

Cargo insurance is a very effective way of covering losses due to unlikely damages in transit and is fairly inexpensive. Many people forgo arranging cargo insurance on their goods when in transit which can be costly on the rare occasion that goods are damaged in transit.

Mannson freight Services Limited are a UK Freight Forwarder based in Basildon Essex who offer a range of sea freight, air freight and road freight products. All of these methods of transport can be covered by insurance premiums from as little as GB£ 35.00 per shipment. It is a small price to pay for peace of mind that in the unlikely event your cargo is damaged on route to your client , you will be covered against the replacement cost of your items and the freight charges that you have outlaid.

To arrange cargo insurance on your goods you should notify your freight forwarder at time of booking as the insurance should be arranged prior to vessel / flight / truck departure.

Questions that our Basildon, Essex head office are often asked about cargo insurance are as follows along with the simple answers.

Q) Do I need cargo insurance for my goods?

The decision is yours. While all good freight forwarders will take every effort to ensure goods are safe in transit accidents do occur from time to time. What you need to do is look at the value of goods you are shipping and the costs to you if goods are damaged in transit. Compare this with the relatively small cost of insuring your goods over a set period of time and make an informed decision based on that.

Q) How much does cargo insurance cost?

Cargo insurance is based on the insured value of your goods. Usually this is the value of the goods themselves, plus the total shipping costs, plus 10% especially where duties and being paid). This overall value will cover you in the event that goods arrived damaged at final delivery point as you will still be obligated to pay your freight forwarder for the shipping of the goods as per their terms and conditions.

Once you have your cargo insurance value you need to multiply by the premium offered by your freight forwarder / cargo insurance company. At time of writing percentages vary between 0.35-0.55% for standard goods depending on origin/destination and commodity (for example glassware travelling to West Africa from UK might attract a higher premium than traffic cones travelling from UK to France due to the extended risks involved). There will usually be a minimum premium charge.

Q) Where do I insure goods up to, arrival port or door?

This is a very important point. You can only insure goods on a door to door basis. The reason for this is simple. If you have insurance arranged for a full container of say china cups from door Stoke on Trent to arrival Shanghai port and the consignee in Shanghai then arranged own insurance from Shanghai port to door Shanghai, the consignee then finds all cups are damaged when the doors are opened at final destination, but exactly where did damage occur and which insurance company is responsible to pay out? This is the reason that cargo insurance should always be offered on a door to door / warehouse to warehouse basis.

Q) Can I get cargo insurance to cover all of my shipments rather than on a per shipment basis?

You certainly can. You should however arrange this via an insurance broker specialising in insurance for goods in transit as opposed to through your freight forwarder. Freight forwarders will usually operate an open policy with their insurers / underwriters whereby the issue insurance certificated under that policy to various clients on a per shipment basis only.

Q) Are their circumstances whereby insurance companies won’t pay out for damages?

Yes, you need to demonstrate that you have taken proper care to package your goods appropriately to protect them based on the nature of goods being shipped and your chosen method of shipping. There are also clauses which you should take note of when insurance is being arranged, an example of such clauses is that machinery / vehicles would not be covered for mechanical derangement (breakdown) or rusting as this is seen as something that should not be caused by shipping or could be avoided by proper preparation / packing of the goods. Some insurance policies will also exclude scratching etc. of paintwork as again if this is a concern the insurance company would expect the shipper to pack goods appropriately to avoid such external damage. Always check the causes or ask your insurer / forwarder if in doubt!

Q) Does insurance cover me in the event of general average?

From time to time the conveyances that carry our goods around the world will be damaged and may require salvage / repair. In cases where this is severe and will cost a lot of money to put right the owner of the conveyance reserve the right to declare general average and appoint a loss adjuster to recover costs from the people with goods on the conveyance in question.

If you have cargo insurance in place the general average will be covered for your goods, whereas anyone without appropriate insurance cover will be asked to pay a percentage of goods value determined by the loss adjuster before the carrier are legally allowed to release goods to them. This is not a frequent occurrence but worth bearing in mind!

Mannson Freight Services Limited can arrange cargo insurance for you if goods are being moved on our own service or others services through our cargo insurance policy with CNA who are one of the largest marine insurance companies in the world. For competitive pricing contact sales@mannson.com and the team at our Basildon, Essex HQ will be pleased to assist.