Transportation insurance is, therefore, a great way to eliminate risk when shipping goods. Transportation insurance is a policy that offers coverage on the insured’s property while it is in transit from one location to another on any necessary mode of transport. Cargo transportation insurance mainly covers compensation for loss and relevant charges of the insured goods caused by natural disasters and accidents in transit. This includes transport by land, air, and water. When you have a transportation insurance and something happens to your goods during transport, or it is lost completely, you are fully covered and you will be compensated in full as well. Shipping companies, or freight forwarders, do not have an insurance. Shipping companies automatically cover damages or loss that might occur to your goods during transport. Besides opting for transportation insurance, make sure the goods are packed safely and securely also mitigates any loss.
shipping insurance coverage: Target Customers
Foreign investment companies, processing trade enterprises, foreign engineering service companies, Import and export trade enterprises, and logistics companies.
shipping insurance coverage: Features
Depending on transportation method, it can be divided into marine cargo transportation insurance, continental cargo transportation insurance, aviation cargo transportation insurance, and parcel transportation insurance. The liability scope mainly covers bad weather, lightning, tsunamis, earthquakes, floods, and other natural disasters, as well as standing, striking a rock, sinking, bumping, colliding with drift ice or other objects, fire, explosion, and other accidents. The insured object is the goods in transit, and the main insurance liability is for natural disasters and accidents.
Where do I buy transportation insurance?
Many businesses do already have such a transportation insurance included in their warehouse insurance without knowing it. If you are shipping frequently it might be a good idea to have general transportation insurance, which would cover every shipment you make instead of just a single shipment. Most transportation companies offer transportation insurance alongside each individual shipping.
When does it pay to buy transportation insurance?
All transportation insurances also come with a deductible. It pays when the value of the goods you are shipping significantly exceeds the limitations of liability and you’re deductible. However, one of the reasons why you might buy one anyway is that it is generally quite easier and faster to have your compensation claim approved through a proper insurance company than a freight forwarder.
You will need documentation
Make sure you have supporting documentation for any claim you file. In order to file at USPS, you will need a completed claim form, evidence of insurance, evidence of value, and proof of damage or loss of contents. Some instances require a repair estimate as well. If something can be repaired, the carrier won’t give you the full amount of the item.
shipping insurance coverage: Carrier Insurance
This offer through a carrier such as the USPS, FedEx, or UPS. The most common type of shipping insurance is carrier insurance. If a company regularly ships a high volume, over time, individually ensuring packages can become quite costly. In the event that a package is lost or stolen, the carrier may require the shipper to prove the value of the item via supporting documentation. While carrier insurance is easily obtained at the point of shipment, processing a claim on a lost or damaged package can entail a long wait time.
shipping insurance coverage: You can purchase 3rd-party insurance
This type of insurance is acquire through a private company. Third-party insurance for a single package is generally cheaper than the carrier’s coverage. Other perks of using third-party companies include fast payment and additional payment options. These insurers will often ensure packages with higher values, notes Nash. Many 3rd party insurers will cover international shipments. Furthermore, 3rd party insurers have the ability to configure insurance options to suit specific business needs.
shipping insurance coverage: Patience
The typical timeline for processing a claim includes searching for the lost package. The typical timeline for processing a claim can take 7 to 10 business days. Expect to wait when you file a claim as reimbursement can take a while. Once the courier receives the documents, the whole process unfolds quickly;