FREIGHT INSURANCE – WHAT YOU NEED TO KNOW

We negotiated with the best certified insurers to select the most attractive package for our clients, both in terms of cost and safety. Our insurance is limiting considerably the risks for your enterprise. A supply loss can be terrible for your business.

WHAT IS THE FREIGHT INSURANCE?

Legally, it is a contract established between an insurance company and an insurance holder. All carriers have to bear a minimum insurance rate, known as “Carrier liability”.

However, the carriers’ responsibility brings a tiny coverage. It is called the “Hull insurance”, which covers the body of the ship, its equipment and sometimes its crew from natural disasters, vehicles accidents or war acts. As you understand the shipments are not covered in this situation, so we cannot say it’s a reliable coverage.

Presou Info: Consequently, shippers can ask for a cargo-insurance to protect their goods against losses, damages or theft. Usually, the goods are covered during their warehousing and their transport, until they reach their destination.

WHAT ARE THE LIMITS OF THE FREIGHT INSURANCE?

This cargo service is limited, of course. For instance, during a shipping by truck in the USA, the freight insurance doesn’t protect against all losses that can be caused by the carrier, under certain laws. There is no unique form of cargo insurance, that a carrier could buy to be totally covered.

There are several types of cargo insurance, some are named “all-risks”, “large form”, “legal liability”, and “trucking freight”. What you must know is that depending on the events that caused the damage, loss or else, you may not be covered.

*Usually, it is important for the shipper to document their cargo value in case of dispute, loss or damage. You might also work with an agent and an attorney to understand the process and be sure that you’re covered.

HOW MUCH WILL COST MY CARGO INSURANCE?

*It depends on your items and freight value.

Presou Note:  The method of calculation of your insurance cost is the following. You’re additioning the value of your goods and the value of your freight, then you apply a 1-3% factor on it, depending on your products’ category.

Your insurance cost = (Goods’ value + Freight value) x 1-3%