Cargo insurance: why protect your goods?

It happens.

cargo insuranceSometimes inventory and supplies can be damaged during transit. Items shipped in a cargo container often have a long way to travel until they arrive at your place of business. Last month we read about a container fire on board a vessel that was on its way to Halifax (luckily all crew were safely evacuated). Over the past few weeks, we’ve shared information about winter’s cold and snow impacting shipments. Our partners chose to be safe and keep cargo safe by altering rail cargo shipments to shorter trains and simply staying off the roads.

As with all industry, the safety of the people surrounding the shipment coupled with the care of your inventory is important. But sometimes the unavoidable happens. Take care of your shipment.

As you’re preparing your next cargo shipment remember the reasons why it’s important to pay a bit extra to insure your cargo. You’ll be thankful if something unexpected happens.

  • Why insure? Insuring your shipment will help you:
    • Recover costs of damaged and lost product
    • Mitigate risk for payment terms –
      • Here’s a scenario to consider: if you are paying ahead of time but something happens to your shipment, you have to pay out again to get your goods. Insurance mitigates some of these fees.
    • Protect yourself more than declaring a value will. Declaring a value limits you to the to the terms on the b/l – i.e. – 9.00 per lb., etc. (see our terms and conditions). All risk insurance covers just that – all Risks.
    • Recover freight charges. We recommend that you insure your shipment for CIF +10% (Cost, Insurance and Freight), which allows you to recover freight charges.
  • What insurance doesn’t cover:
    • Lost time
    • Lost opportunities
    • Lost wages from labor problems stemming from the shipping issues
  • What if I don’t insure:
    • You are limited to declared value limitations (see terms and conditions)
    • You are not covered for any liability situations including General Average

Call or email us (use the form to the right) today with questions and
to make sure your shipments are insured.

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