When Do You Need Cargo Insurance?

When Do You Need Cargo Insurance?

Cargo ships and fleet vehicles have enough to worry about when it comes to logistics, but having to prepare for the unexpected is another layer of stress that needs to be kept at bay. Your goods need insurance, just like someone needs health insurance, so understanding the benefits of this coverage is important when transporting actual precious cargo.

Investing in cargo and liability insurance will provide a layer of protection and peace of mind when behind the wheel. This kind of insurance is needed to protect what’s being hauled and shipped from things like theft, damage and collisions. Not having insurance in place will put the cost of loss and damage on your company, adding up a huge unnecessary bill and eating away at your finances.

Here’s are some examples of why and when cargo insurance comes in handy:

Reduce Financial Loss

At the end of the day, the bottom line is an important measure for any transportation company. If you’re an exporter who hadn’t been paid yet when it comes to the goods at the time of shipment, or an importer who has paid for all the parts without receiving them, there’s a built-in risk of taking a financial hit if said goods are lost or damaged.

Contractual Requirement

A sales contract may obligate you to provide cargo insurance to protect interest of the buyer or their bank’s interest. Failing to do so cannot only set you up for major financial liability when it comes to lost or damaged goods, but non-compliance with your contract terms in mind. Overall, this can ultimately lead to loss of sales and legal issues that can break a company’s bank.

Coverage for Limited Carrier Liability

Carriers aren’t responsible for common causes of loss that happen while in transit (i.e. general average, natural disasters), by law. Even if a company is liable, carriers’ liability in the event of a loss is limited. In most cases, you will only recover pennies on the dollar from the carrier.

Having This Insurance Gives You More Control

One thing you need to have is some sort of control on your side, on your terms, so you are not taken advantage of, or just for the simple thing of making sure everything is above board. Relying on buyer’s or seller’s insurance may be an option, but you have to be happy with the fact that the insurance has been purchased and that the insuring terms, valuation, and limits provided by all parties are satisfactory to your needs.

About Western Truck Insurance Services

Western Truck Insurance Services is a commercial truck insurance agency with roots dating back to 1954. We have evolved into a highly respected, professionally managed, truck and \ transportation insurance brokerage. The hallmark of our organization is our desire to provide unparalleled service. We go way beyond what you expect to receive from an insurance brokerage. Equipped with state of the art automation, Western Truck Insurance can provide you with lightning fast truck insurance quotes, customer service, Insurance certificates and coverage changes.