As a shipper or receiver of goods – whether your cargo moves internationally or domestically – the potential for loss or damage to your cargo is a very real possibility.
The transportation industry can be tough on your freight. Whether you are shipping teddy bears, fresh flowers, or industrial generators – in a small box or cargo laden in twelve shipping containers – the risk for loss or damage is always a looming hazard. Cargo may face long voyages and flights, frequent handling and shifting, as well as risks such as theft and adverse weather — just a few of the many challenges encountered during transit.
So, how do you mitigate that risk and protect your financial interests?
When someone touches your shipment – even mother nature – there is risk involved; a critical aspect to understand as you plan your freights’ journey. To best protect your cargo – and your business – choosing the right insurance policy is crucial for both domestic and international trade.
You may have seen photos or videos of vessels overturning, trucks flipped on the side of the road, or aircrafts involved in serious incidents. These instances can be eye-opening, especially considering the risk that is undertaken by those drivers, aircraft crew, and seafarers to safely transport cargo from one point to another.
As a shipper and/or receiver of goods, it is important to understand why insurance is so crucial in trade as a whole. Some of the basic considerations to think about and ask yourself include:
- Is there full insurance coverage on your shipments?
- What are you shipping? Factors such as commodities, values, destinations, etc., will dictate how effective your policy is.
- Are you self-insured or do you require your logistics partner to offer coverage? (Trans-Border offers coverage, if needed!)
- Never rely upon carrier liability coverage! Why? See our comparison on Carrier Liability vs. All-Risk.
- Are your goods packed adequately? Are they crated, or banded and shrink-wrapped? Are their special handling labels attached?
Loss or damage to cargo is always a possibility during transit, which is why full insurance coverage should be seriously considered every time you ship. Insurance is there to protect your financial interests – just like you have home or car insurance, cargo insurance is essential in protecting you, your business and your cargo. Whether you participate in domestic or international trade, insurance should be a top consideration in your shipping decision-making.
As your trusted logistics partner, we, Trans-Border, are committed to educating our valued customers on risks involved in shipping and best industry practices to help reduce those risks. If you have questions about cargo insurance, please contact our Insurance Team or by calling 518-785-6000.
