Transport insurance is designed to protect you against financial loss of cargo while it is being transported, whether by road, rail, sea or air but there are several things you need to be aware of in order to get the coverage best-suited to your needs.
Why Do I Need Transport Insurance?
When it comes to transporting goods, there are many things that can go wrong unexpectedly. If you are transporting by road there are the things most people think of such as a truck overturning or your cargo being stolen while the truck is left unattended. When transporting goods by rail, sea or air, however, the odds are greater that you will lose your entire shipment. For all of these reasons a good transport insurance policy is vital.
What Does Transport Insurance Coverage Provide?
Transport insurance varies greatly so make sure you work with a specialized agent so that the policy you purchase includes the coverage that you need. Some policies are very basic and list covered causes such as natural disasters, collision accidents and bridge collapse whereas other policies are more comprehensive and cover damages due to loading/unloading and loss due to theft, negligence and even acts of war or terrorism.
How are Premiums and Compensation Determined?
Premiums for transport insurance will depend greatly on the number/amount of goods or cargo as well as the transport route and destinations and may be impacted by the reputation of the transport company or the claims history of the insured party. Compensation to the insured party in the event of an accident involving loss or damage will depend on a number of factors including the estimated value of the goods being transported and whether the transport is domestic or international.
What Other Transport Insurance Coverages are Available?
Each type of goods being transported can have its own special considerations during transport. Many transport insurance companies provide special coverage for things like valuable records, registered and express mail, and goods requiring armored car transport. If you are transporting specialized cargo, it’s wise to deal with a specialized transport insurance broker who will have a more broad access to the kinds of coverages you may need in order to be adequately protected.
What is Marine Coverage?
Marine insurance is purchased either for cargos or vessels. Vessels insurance is also known as Hull and Machinery insurance and can be on a voyage basis or for a certain time period. Voyage basis marine coverage provides a port-to-port coverage for those ports specifically mentioned in the policy. Time basis marine coverage is only for the time period stated in the policy. This is important to know because if your goods are delayed, your policy could expire before they are delivered which would leave you vulnerable to financial loss or responsibility.
Now that you understand the basics of transport insurance, make sure you always discuss coverage options with your agent or broker. It’s also a good idea to ask the transport company to provide this to you in writing with their insurance policy as it pertains to your cargo which will let you check for any potential in coverage.