Cargo Insurance Explained

Summary

Cargo insurance protects goods during shipping, covering theft, loss, or damage across air, sea, and land transport. There are two main types: all-risk and limited coverage, with all-risk providing broader protection. Even though a carrier may be liable for certain damages, cargo insurance offers faster and more comprehensive compensation. It's essential for shippers, as standard liability policies often exclude goods in transit. DB Schenker offers competitive rates and global coverage, including additional protection for events like civil unrest. Single shipment and annual policies are available, offering peace of mind at affordable rates.

Takeaways

• 😀 Cargo insurance covers the value of goods against theft, loss, or damage during shipping, regardless of who is liable for the accident.
• 😀 There are two main types of cargo insurance: all risk coverage and limited coverage. All risk coverage offers the broadest protection, covering any risk not expressly excluded.
• 😀 Limited coverage is more restricted and offers less protection compared to all risk coverage.
• 😀 Cargo insurance is important because carriers or freight forwarders may not always be liable for damages or losses, especially if fault is unclear or limited by treaties.
• 😀 Even when a carrier is liable, their liability is typically limited to a set dollar amount per pound, not the full value of the goods.
• 😀 Cargo insurance ensures fast and full compensation for losses, regardless of fault, and costs only a small fraction of the actual value of the goods.
• 😀 Cargo insurance protects against liability issues, such as general average claims, which can make shippers proportionally liable for losses on affected vessels.
• 😀 General liability or property policies typically exclude goods in transit, making it necessary to get open marine cargo insurance when shipping via air, land, or sea.
• 😀 DB Schenker offers competitive rates for cargo insurance due to strong relationships with top-rated insurers and buying power.
• 😀 Open marine cargo insurance covers all shipments for a full year, eliminating the need for paperwork with each shipment and saving time and money for infrequent shippers.
• 😀 For occasional shippers, DB Schenker offers affordable single shipment cargo insurance policies with instant online quoting, making it easy to get insured quickly.

Q & A

What is Cargo Insurance?

Cargo Insurance covers the value of goods against theft, loss, or damage during shipping, regardless of who is liable for the incident. It applies to all modes of transportation, including air, ocean, and land.

What are the two main types of Cargo Insurance?

The two main types of Cargo Insurance are All Risk Coverage and Limited Coverage. All Risk covers all risks unless explicitly excluded, while Limited Coverage is more restricted and covers fewer risks.

Why should I buy Cargo Insurance if my carrier or Freight forwarder is responsible for my shipment?

While carriers and Freight forwarders may be liable for some losses, it can be unclear who is at fault in certain situations. Cargo Insurance ensures quick compensation and protects you from liability issues, which can be time-consuming and complicated.

What happens if goods are damaged during transit due to an accident, and who is liable?

If goods are damaged due to an accident, liability can be unclear. For example, if another vehicle collides with the carrier’s truck, causing the goods to fall and get damaged, the carrier may not be liable, even if fault is established.

How does Cargo Insurance help if a carrier declares General Average?

Cargo Insurance protects you from General Average claims, which occur when all shippers on the affected vessel become proportionally liable for a loss. With Cargo Insurance, you won’t need to pay out-of-pocket in such cases.

Does my general liability or property policy cover goods in transit?

No, goods in transit are generally excluded from general liability or property policies. If you’re shipping goods by air, land, or sea, you’ll need a specific open Marine Cargo Insurance policy to cover them.

What is Open Marine Cargo Insurance, and how does it benefit me?

Open Marine Cargo Insurance covers all shipments for a full year, regardless of the mode of transportation (air, ocean, land). It eliminates the need for paperwork for each shipment and offers cost savings for businesses that ship multiple times a year.

What should I do if I only ship goods once or twice a year?

For occasional shipments, DB Shanker offers affordable single shipment Cargo Insurance policies, which can be easily purchased with instant online quoting, ensuring your goods are covered without the commitment of an annual policy.

What are the advantages of getting Cargo Insurance from DB Shanker?

DB Shanker offers competitive rates, door-to-door global coverage, and fewer exclusions. They provide additional coverage options for events typically excluded from standard policies, like losses from political or civil unrest.

How does DB Shanker’s Cargo Insurance differ from standard policies?

DB Shanker’s Cargo Insurance offers broader coverage with fewer exclusions, and the option to add protection against specific risks, such as political unrest. Their relationships with top-rated insurers allow them to offer highly competitive rates and global coverage.