Reasons to get cargo shipping insurance
When shipping your products, there is a possibility of something going awry. Whether it is a natural disaster, a vehicle crash, or even an act of war if you are shipping through a war zone, it is something that happens and you have no control over your items. However, some international shipping companies Lebanon offer cargo insurance or freight insurance. You can at least get compensation for your lost goods. And if that is not enough for you to make up your mind, read this article about the reasons to get cargo shipping insurance. Let’s see what these insurance companies have in store for you.
Cargo Insurance? What is that?
Cargo insurance is when you get compensation for the damage your items sustained during the shipping process. Shipping companies usually have some form of cargo insurance known as carrier liability. However, carrier liability does not cover many things and there are almost infinite possibilities of what could happen to your cargo during transit. This is why you need to get cargo insurance. It is the best way to protect your goods when in transit and the best way to receive compensation for your lost, damaged or broken things. When you get cargo insurance, your goods will be safe from the moment you give it out and it gets placed in storage Beirut, to the moment your buyer receives the item.
Types of cargo insurance
There are several types of cargo insurance. They are mostly based on the type of the load, and the type of shipping. It is different if you are shipping within your country and internationally. Therefore we have:
Insurance for land cargo:
This type of insurance provides compensation for any accidents that happen when shipping overland. This includes trucks and other smaller vehicles. This type of insurance covers collision damage, theft, and similar types of accidents. It is usually regulated by the laws of the country your cargo passes through. However, the laws of the country of departure have an advantage.
Insurance for marine cargo:
This type of insurance provides compensations for any accidents that happen when shipping overseas or by air. Theft, damage during loading and unloading due to inexperienced packing and crating, natural elements, and similar types of accidents are covered with this type of insurance. There are also subtypes of marine insurance called policies. We will list them now:
- Open cover cargo policies: This policy is activated when the insurance holder requests coverage for a couple of different types of accidents. Open cover cargo policies are divided into two categories: permanent policy, and renewable policy. The permanent policy is when the specific time period is under coverage and the shipper can ship as many shipments as they would like. The renewable policy covers only a specific value of the cargo shipment. When the shipper crosses that value, they are required to renew the policy.
- Specific cargo policies: This happens when freight forwarders in Lebanon request insurance for a specific type of consignments. It is also called the voyage policy because you can only cover shipments with it.
- Contingency insurance policy: This policy is set into motion when the buyer is responsible for insuring the shipment, not the seller. Sellers usually do this when they expect that the shipment will not be able to get to the buyer in pristine condition. Sometimes, if the items arrive in a bad condition, the buyer may refuse to pay for the damage. That is when the seller can seek legal ways to ensure that the buyer will pay for the damaged shipment.
Reasons to get cargo shipping insurance
Now let’s get to the reasons why you should consider getting cargo insurance.
This is a big reason to get cargo shipping insurance. The number of cargo thefts has been steadily rising throughout the years. This is also not including piracy. The number would be much greater if we did. Your insurance company will be able to recompensate you for your lost goods if someone steals your shipment.
Overseas shipping may lead to lost containers
Huge freight carriers using storage container pods may occasionally lose your cargo due to rising waves. The number has been growing throughout the years, with 733 container pods lost to the sea during the 2011-2013 time period. Considering that the number doubled compared to the previous time period of 2008-2011. This is also excluding natural disasters. A big reason to get cargo shipping insurance, indeed.
This is just something that nobody can predict and control. They can happen and the entire cargo of a ship can disappear. The average annual loss of containers due to catastrophic accidents is 2643, and that number is likely to go up due to the increasing climate change. Nobody knows when a hurricane could show up or a pirate attack could happen. Pirate attacks also belong to this category. However, when it comes to pirate attacks, the cargo does not disappear into the sea, but the pirates steal it. Furthermore, getting marine insurance for this is worthwhile, as you will get compensation for the lost goods.
This is an even more common occurrence than all of the above. Whether it is because of improper packing or inexperienced loading and unloading of the container pod, it can happen and it is a good reason to get cargo insurance. There are many types of damage that can occur during shipping. There is physical damage, temperature damage, contamination, or infestation. If the shipping company is not that good they will most likely not be able to keep your shipment in pristine condition. Therefore, getting cargo shipping insurance is a good idea.
With all that said, there you have it: Reasons to get cargo shipping insurance. We have covered what is cargo insurance and why is it a good idea to get it. Good luck with your shipping!