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Is Cargo Insurance Important?

If you are a small business owner looking to transport goods and products across the country or over borders, you have probably heard of cargo insurance. You might be looking for insurance for cargo and wondering why insurance is important. Maybe you’re not sure exactly what cargo insurance coverage is available to you. 

Don’t worry, we’ve got you covered. This article will answer all the basic questions about cargo insurance so you can make an informed decision. 

What is cargo or shipping insurance?

Cargo insurance is a form of insurance for anyone shipping, importing, or exporting, designed to cover liabilities and protect your goods and services from damages or losses during transit. There are different types and levels of cargo insurance to cover different liabilities, but shipping most companies offer it to at least some degree.

How do I get it?

Generally, you get cargo insurance through your shipping company. Most shipping companies have the option to add-on cargo insurance in addition to their shipping pricing. 

Why do I need cargo insurance

Although shipping is usually safe and secure, there are things that could go wrong. Even though your shipping company will cover the cost of the goods if the damage is their fault, there could be other factors outside of their control that won’t be covered.

For example, if weather causes delays or damage outside the shipping company’s control, the shipping company may not be liable for covering the cost of your goods and products. Cargo insurance which goes above and beyond that basic coverage allows you to feel protected and secure when shipping. If damage occurs in transit, you’ll be reimbursed for the cost of your goods.

Is cargo insurance worth it?

Considering how much your goods and products probably cost your business, it is usually worth it to pay the small amount extra to make sure that they are covered against potential loss and damages. You can’t control what happens on the road and it’s less expensive to pay for cargo insurance than to lose all your goods in a shipment that gets lost or damaged. 

How long do I have to make a claim if my cargo is damaged?

If you need to make an insurance claim or investigate a situation that leads to damaged goods, you usually have up to 60 days to make a claim for partial damage and up to 9 months to make a claim for the loss of an entire shipment. It is always best to make the claim sooner rather than later if possible. 

Make sure you hold onto all paperwork associated with the shipment and claim. Then, if you plan to make or update a claim, you will have everything you need to prove your case. 

Now you know the basics about cargo and shipping insurance, how it works, and even how long you have to file a claim. 

There is no need to worry about your freight with Welke. We have over 35 years of expertise and an excellent cargo insurance policy that will protect you and your goods if anything goes wrong.

Ready to get started? Get a quote today.