Shipping insurance is a cost-effective investment that shouldn’t be overlooked for international ocean and air freight to make sure your valuable cargo is sufficiently protected. While most shipments go smoothly, unforeseen events do happen. The small investment in cargo insurance decreases your financial exposure in the unlikely event of a claim.
What is Cargo Insurance?
Throughout the entire international shipping process, cargo insurance will protect the value of your goods against theft, damage, or what is known as “General Average.” General Average is specific to ocean transport and means if goods are lost or damaged as a result of the vessel’s captain trying to save the ship, all shippers share in the loss equally. In the event of this happening, expect many delays including cargo being held while the case is being investigated.
All-Risk Marine Insurance is recommended to cover most losses or damage. Over the years, our customers have found invaluable peace of mind by knowing their goods are insured for most losses or damage.
There are several exclusions you should know about with cargo insurance including:
- Acts of war
- Piracy
- Natural disasters (acts of God)
- Negligence
- Improper packing, blocking and bracing
- Improperly-classed hazardous goods
There are also factors that will affect the cost of your cargo insurance including:- Destination country/region
- Perishable cargo
- Dangerous goods
- High-value cargo
- High risk of theft items (e.g.: jewelry, iPads, electronics).
Is Cargo Insurance Required?
There is not currently a requirement for insurance, but without it, the basic coverage provided by carriers usually does not adequately cover the value of your goods. Basic carrier liability is limited to $500.00 per shipping unit for ocean, and $24.00 per kilogram for air freight. You can be the judge, but in our experience, customers without shipping insurance have always regretted the decision.
Incoterms®
It’s also very important to know your Incoterms. Incoterms rules spell out the rights and responsibilities of both buyer and seller in each stage of an international shipment. They dictate liability for any loss incurred and can help determine if you are responsible for insurance coverage.
Incoterm rules can be found here.
Consult with DGX
Choosing the right logistics partner is crucial for ensuring your shipment is properly handled, including understanding all the factors relating to ocean and air cargo insurance to help minimize risk at each touch point, from origin to destination.
DGX-Dependable Global Express has a long history of helping its customers properly insure their freight for the correct value and at competitive rates. Contact us today for a free consultation for your next international shipment. We’ll guide you through each step of the process and help minimize unnecessary delays and avoid unneeded headaches.
As part of the personalized attention that we provide to every customer, DGX assigns you a dedicated sales agent at the front end of your shipment planning. For more information, call us at (888) 488-4888 Ext. 2011 or email us.
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