What cargo insurance is, why it matters, and how to choose the best option.
Cargo insurance – what it is
Transport and forwarding services, like everything in our lives, involve a certain amount of risk. That is why a considerable number of companies engaged in freight transportation also provide insurance for the goods being transported, covering various degrees of risk.
For this reason, after signing a freight transportation contract, a cargo insurance contract should be prepared. Its object is the client's property interests directly related to compensation for material damage resulting from spoilage, breakage, loss, or disappearance of the cargo. However, it is important to remember that there are degrees of risk that are not insurable: damage by insects, shortage of cargo while the packaging remains intact, intentional acts or gross negligence by the client, natural disasters, military actions, terrorist acts, special properties of the cargo, etc.
Suppose you have chosen cargo transportation Moscow–Voronezh and decided to insure your goods. Keep in mind that the most favorable insurance condition is "insurance against all risks." It implies compensation to the client by the carrier in the event of cargo damage, as well as its total or partial spoilage during transportation. However, the terms of the insurance contract can be modified according to the client's wishes. For example, cargo insurance may cover only the period of transportation, or it may encompass the entire period from the moment the goods are dispatched from the sender's warehouse until delivery to the recipient's warehouse.
Insurance rates depend on many factors. Each forwarding company has its own tariff, which depends on:
• loss statistics;
• condition of the vehicle fleet;
• types of goods transported;
• the geography/route of the transportation;
• the number of trips carried out during the transportation, etc.
There are several general pieces of advice that all clients of freight companies should heed. Before signing an insurance contract, read the document several times and check all the cargo insurance conditions. If, in the event of an insured incident, your company states that losses will not be compensated due to lack of reliable data on the causes of damage or loss of the transported cargo, be sure to collect evidence to support your claim. Treat the signing of a cargo insurance contract responsibly, because it is the guarantee of your peace of mind and financial security.
