Contingent cargo insurance – For the time being, transporting goods to any parts of the worlds is possible. However, there is a risk for the goods to be damaged in transit or not to be able to arrive on the destination. A lot of risks from accidents, thefts to sinking ships have to be faced during the journey.
That is why it becomes highly urgent to carry contingent cargo insurance particularly for those who have, manage or even operate any business like transportation brokers, exporters/importers, freight forwarders and logistic providers.
If you are among those people, speaking to an expert of this type of insurance is highly needed. But, before coming to an expert, reading this information will be helpful so you know where and what to find.
Cargo Insurance: Purposes and Importance
Business reputation is important but, protecting assets is also equally needed. This type of insurance will assure you to have them altogether. Besides, it also improves and protects the relationship between you and your clients.
Those two things are the purposes of the insurance of contingent cargo and in reality, this contingent cargo insurance saves our business saves our business even in very impossible way.
For instance, there is a carrier picking up load of frozen beef. Unfortunately, the truck has an accident while in transit. The truck insurer, however, denies the claim. Since you have chosen an insurance company to act on your behalf, the claim is finally accepted and also paid, enabling to save the broker up to $99,000.
Requirement to Insure
Indeed, there is no legal requirement for you to carry this type of insurance. However, it is not rare that you will find your carriers are frequently reluctant to work with you since who do not carry contingent cargo insurance. If your business is just developing, carrying this insurance may become a burden.
However, if you have to experience damage, the carrier will refuse the claim. Then, the shipper will look to you to make good on that claim. Your business reputation will run if the payment is not possible anymore.
As it has been previously mentioned, this type of insurance gives protection towards business runs freight forwarding, importer/exporter or even transportation brokers. If you have purchased contingent cargo insurance, your business will be protected against common causes of loss like theft and damage during transit. Besides, it also covers the cargo loss on any type of the common carrier that includes ship, rail or truck.
More coverage includes losses due to weird causes to ocean shipping or trail transporting like a train wreck or the sinking ship.
How to Purchase ?
When it comes to buying cargo insurance, make sure that you get a reputable insurance company that has long experiences in logistic industry.
Find that that insurance really provides comprehensive coverage that suits to your business. All of those have to be clarified before you sign the contract of contingent cargo insurance.
Independent insurance is available if you need a help with buying this type of insurance. This existence of agent is needed since choosing a company can be daunting task including determining the coverage.
Besides, when making claims, you may have to go through a process that you cannot understand property. An agent will give advocate and consultation when there is a claim.
However, if you think you can do this yourself, there is nothing wrong with purchasing this insurance on your own. Not to mention, if your business needs to save money and not hiring an agent will be cut down the business expense.
Contingent cargo insurance is increasingly needed with high ocean freight traffic travels. All of us need a peaceful of mind, both customers and shippers.