Cargo insurance duringimport and export is an essential step to ensure the protection of goods and commodities against risks that may arise during transportation between countries.
Whether goods are transported by sea, air, or land, insurance protects traders and companies from potential losses due to accidents, natural disasters, theft, or even unexpected delays.
Insurance helps reduce financial risks by guaranteeing compensation for damaged or lost goods, thus maintaining business continuity and giving both parties in the transaction confidence.
Moreover, insurance contributes to enhancing a company’s reputation by demonstrating its commitment to safeguarding the interests of its clients and business partners.
Many importers prefer not to obtain cargo insurance in order to reduce costs.
However, importers realize the value of insurance after a shipment problem occurs. If the goods are damaged, you usually won’t receive compensation and will lose everything. But if you have insurance, you will be compensated.
If you have goods in transit, you have two options:
Option 1: Do not request cargo insurance
- You may choose not to insure your goods, but in the event of damage, you can claim compensation from the carrier—although results are not guaranteed.
- Under the carrier’s terms and conditions, you will receive minimal compensation: about $2 per kilogram for air freight,and $500 per shipping unit (which may vary from a small container to a large one) for sea freight. Carriers may not be legally liable, and the compensation process can take a long time without guaranteeing a successful claim.
- Carriers may not be legally liable, and the compensation process can take a long time without guaranteeing a successful claim.
Ultimately, if you choose this option, you need to have a full and thorough understanding of the carrier’s terms and conditions, so you know exactly what you will receive if your shipment is at risk. This may be a reasonable choice only if your shipment value is very low.
Option 2: Request cargo insurance
With this option, you can obtain an insurance policy to cover the actual value of your goods. If you wouldn’t neglect insuring your home or car, then you should think twice about your shipments, which are even more exposed to risks.
Frankly, cargo insurance is very inexpensive—why not buy it?
- The best time to purchase insurance is when requesting shipping quotes, as the carrier can provide all-inclusive prices without the need for comparison.
- Adding insurance when requesting a transport quote ensures that your policy is in place before your goods are loaded onto the ship or plane. You will need comprehensive coverage against all risks rather than coverage for losses only. However, keep in mind that comprehensive insurance has limits, as it will not compensate you for any sales losses caused by shipment delays.
For example:
The process of making an insurance claim is simple, and freight forwarders or logistics and customs service providers, such as Bader International Shipping (BIS), will handle most of the process on your behalf. BIS
We are also pleased to receive any requests or inquiries regarding cargo insurance. Please contact us through the messaging form . [here] .
