Cargo transportation is a profitable process but at the same time, a risky one. Cargo travels a long way from point A to point B as well as it goes from hand to hand and reaches the target destination by air, water, and land freight. In this entire chain, innumerable problems can arise: the cargo can be damaged for various reasons, for example, due to adverse weather conditions, the cargo can be lost, etc. And since we are often talking about large sums of money, having the responsibility of the carrier is not the solution to the problem. 'Cargo insurance' is the solution to the problem.
What is cargo insurance?
Cargo insurance protects the customer from financial losses due to damaged or lost cargo, compensating the customer's financial loss due to accidental events. Many risky events require cargo insurance, such as cargo damage, theft, cargo loss, refusal at customs, piracy, etc. Cargo insurance compensates for damages to your goods against physical loss or damage while in transit by sea, air or land.
What risks does cargo insurance protect against?
- fire or explosion,
- natural disasters,
- an accident, collision, sinking car,
- unloading in an unplanned place, under special conditions,
- cargo damage due to loading, positioning, unloading and refuelling of the vehicle, etc.
The reasons are different, the consequences are similar. In all cases, there are big financial losses which can be managed if you have 'Cargo Insurance'.
No refund will be done if the cargo is damaged:
- As a result of incorrect, defective or non-compliant packaging,
- because of insects, rodents, worms or mold, fungi,
- due to actions by state or governmental authorities, as a result of confiscation, detention, prohibition of transfer, detention, consequences thereof or any attempt at such etc.
Before signing the contract, be sure to familiarize yourself with all the provisions, including the cases in which the Insurer does not provide compensation for damage caused by the destruction or damage of the entire cargo or part of it.
By the way, cargo insurance is one of the oldest types of insurance. It is said that it was formed when people learned to trade with neighbouring states, to transport goods by sea and land. At that time, they started taking care of preventing possible losses on the road.