Freight Insurance

Protect yourself by protecting your cargo

Freight companies are run by professionals, and like any business, they value their clients. You can bet that if you enlist the services of a trusted freight company, they will be doing their best to provide you with great customer service and great results.

Still, unforeseeable and unpreventable events can happen, which is why freight insurance exists. There are a number of ways you and your freight company can work together to protect your cargo in the event of accidental damage.

Company Insurance

Most shipping companies will offer their own insurance packages as part of the cost of shipping your freight. Also, if you are organizing your shipping through a freight forwarding company, that company will also provide insurance (known as freight forwarders insurance).

However, depending on your cargo, this coverage may not measure up to the worth of your property – many times, it can just be enough to protect the company from incurring losses, without consideration of the time and money you may lose if your cargo is damaged. In this instance, it would be wise to consider outside freight insurance sources.

Extended Coverage

There are two ways you can ensure your freight is protected when you transport:

  1. Pre-existing coverage. It may be that you already have an insurance package that provides coverage on transportation of goods – such as personal insurance or business insurance with clauses like general loss and property in transit. Some credit card companies also provide shipping insurance if you use their card during transactions.
  2. Freight insurance companies. If you don’t have an existing policy, there are many companies who specialize in freight insurance policies for clients looking for further coverage. Often, your freight company will be able to provide you with names of freight insurance providers who can help you find the right policy.

The Three Rules of Finding Freight Insurance – Cost, Insurance and Freight

Before you sign up to ship, it’s important that you determine your insurance needs. First, consider cost – extra freight insurance can come at a price, so you may want to weigh this against the odds of actually needing it. If you feel like you can get along without it, or that you can risk an accident, you could save yourself some money.

Second, you’ll want to think about the insurance itself. What exactly is it covering that you’re not getting elsewhere? If it will provide you with additional coverage for loss of business productivity or sales in the event that you lose your cargo, it may be worth shelling out the extra dollars. As stated above, you’ll also want to make sure that you don’t already have coverage under another insurance policy, to avoid doubling up.

Finally, it comes down to weighing the value of the freight itself. If you’re shipping large quantities or expensive items, you’ll no doubt want to give your freight as much protection as possible. But if it’s not an integral part of your business, or if regular insurance will cover more than the cost of the cargo itself, extra protection could be a waste.

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