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Discover the importance of cargo insurance and how it protects your goods during transportation.
What is Marine Cargo Insurance?
Marine cargo insurance is a type of insurance that provides coverage for goods transported by sea, air, or land. It protects the cargo owner from financial loss in case of damage, loss, or theft during transit. It covers a wide range of risks, including natural disasters, accidents, piracy, and more. By having marine cargo insurance, businesses can ensure the safety of your goods and mitigate potential financial risks.
For your peace of mind, FreightExchange offers low cost Transit Insurance on all shipments. The benefits to your business include:
1. Financial Protection: Insurance provides financial protection to cargo owners in case of loss or damage to goods in transit. This helps your business avoid significant financial losses and maintain your operations smoothly.
2. Peace of Mind: Insuring your goods gives your businesses peace of mind knowing that your goods are protected during transit so you can focus your core operations without worrying about potential risks or losses.
3. Improved Risk Management: By having cargo insurance, businesses can effectively manage the risks associated with transportation. you can transfer the risk to the insurance provider and ensure that you are adequately compensated in case of any unfortunate events.
Managing Your Risk & Lowering Premiums
You can lower your premiums and reduce the risk of damages or losses in transit including:
1. Choose the Right Mode of Transportation: Choosing an express or high service transport option can reduce your insurance premiums. Some modes of transportation may be more prone to risk, leading to higher premiums.
2. Packaging and Handling: The quality of packaging and handling practices can affect the insurance premiums. Packaging your goods properly to withstand rough handling can reduce the risk of damage, resulting in lower premiums.
Of course, the type of goods being transported plays a significant role in determining the insurance premiums and does result in higher premium costs. Perishable or high-value goods may attract higher premiums due to the increased risk of loss or damage and the high cost of replacing the goods if something does go wrong.
Making a Claim
When a loss or damage occurs during transit, cargo owners need to file a marine cargo insurance claim to ensure payment is made as quickly as possible.
1. Prompt Notification: Notify us as soon as possible after discovering any loss or damage. Prompt notification helps initiate the claim process without any delays.
2. Evidence: you will need to provide proper documentation to support your claim. This will include a packing list, photographs of the damaged goods, invoices for repairs or replacements
3. There is an Excess: There is usually an excess applied to all transit insurance claims. In our case, an excess of $100 applies to all claims except for electrical items, in which case a $250 excess applies to all claims.
4. Payment: Once the claim is approved, we will settle the claim by compensating the cargo owner for the loss or damage.