Introduction to Freight Insurance
Freight insurance protects cargo in case of loss or damage during shipping. It provides compensation so you don’t cover expenses if the freight is damaged. You can order freight insurance from shipping companies or insurers. As a shipper, shipping cargo safely is a priority. Accidents happen that damage cargo, which is hard to predict. Freight insurance means you don’t bear the loss. Depending on the policy, you recover part or all of the cargo value.
Coverage and Benefits of Freight Insurance
Freight insurance protects goods in transit from risks like theft, damage and loss. It enables mitigating risks and addressing losses while maintaining operations. We’ll explore freight insurance coverage, benefits and factors affecting rates.
Understanding Compensation in Freight Insurance
A freight forwarder’s obligation for cargo damage is covered by their insurance. Compensation is constrained as weight determines cost. One kg of gold is compensated like one kg of paper.
Considerations for Freight Insurance
Don’t let freight insurance cost fool you. Companies may offer solutions, but policies may not always match needs or fully cover cargo. Freight insurance isn’t always straightforward.
Conclusion
In summary, freight insurance safeguards goods in transit, protecting against financial losses from risks. It’s vital for risk mitigation, asset protection and financial security in logistics and supply chains.