Insurance covers deliver a confidence prior to the cargo, do not have a cargo insurance shows sender’s attitude towards risk

Cargo insurance is an essential for every business that engaged in international or national trade. Cargo insurance protects the loss or damage of cargo during transfer from the point of origin to the point of destination. Insurance is an essential for goods that may be transferred by sea cargo, air cargo or road freight. Today cargo services are fully aware of the damage or loss to their business relationships that can bring by failure to deliver confidence.

Rapid and reliable delivery is a simple commercial need. Like insurance of other goods, Marine insurance is optional and it depends upon the sender’s attitude to risk. Cargo forwarding company does not protect the client’s shipment automatically.

Cargo company should be able to protect the shipment by examining the nature and value of the consignment on the behalf of the sender. Sometimes insurance claims do happen, especially in land cargo. The most common claims in road transport can be caused by the damaging of the transport by accident, fire, theft and pilferage.

We have compiled some thought-provoking considerations and questions to ask yourself when contemplating cargo insurance:

Are your goods of high value or filch able?

If expensive or valued products stolen like jewellery, DVDs and mobile phones so these are easily sold in black markets and therefore, could be a high risk.

Are your cargo goods expensive but of lighter weight?

Standard freight liability insurance is treated based on the weight of your freight. If you have a small but high priced cargo there could be a gap in insurance protection.

Are your shipping goods, fragile?

Fragile items including expensive machinery, solar panels, antiques, items containing glass should be skillfully packed for cargo.

Are your goods securely packed?

Shipping of freight to another country often includes multiple movement and handling of the same cargo. Items that are well packed in wooden boxes and well covered have little danger as compared to the small double layer cardboard cartons. Customers should use black shrink-wrapping to cover high-value cargo.

Level of cargo insurance liability provided by a freight forwarder

The CMR means convention on the contract for the international carriage of goods by road. It was created by the United Nations Economic Commission for Europe and was brought into UK law by the Carriage of Goods by Road Act 1965.

The CMR liability insurance for European shipments by road is approximately £10 per kilo. This rate does alter and the rates for air and sea freight are different.