Deciding on a marine insurance coverage suitable for the business is not an easy task. Specifically, for businesses that operate in the shipping industry and involves the transportation of goods, it is important to have the right and comprehensive marine insurance coverage to safeguard themselves from the financial losses that they may suffer due to various perils. There are various types of customisable marine insurance policies available at different pricing levels. Same applies to Inland Cargo Insurance as well where, to lower premiums, consider factors like cargo value, security measures, and routes.
Marine insurance is an important requirement for both international and domestic trade. The coverage offered to protect the goods and shipments that are domestically being transported by land is known as inland cargo insurance. Though the premium for an inland cargo insurance policy depends on various key factors such as type of coverage, nature of risk involved, type of goods that are transported, shipping route and other terms and conditions of the policy. However, with certain important tips, you can reduce the premium for inland cargo insurance.
Tips to reduce the premium for inland cargo insurance
If you keep the below things in mind while customising the goods insurance coverage, you can keep the premium low.
-
Shop around and compare
Comparison shopping is the key to getting suitable cargo insurance coverage at an affordable rate of premium. A wide variety of marine insurance policies are available in India online. When you compare cargo insurance policies offered by various insurance companies, you can make an informed and rational decision. Comparing the features, benefits, and costs of policies with one another helps you analyse and then decide the coverage that is most suitable for your insurance need. On a digital platform, you can compare the policies from different insurance companies side by side on the basis of their features and cost.
-
Choose the right type of coverage
Choosing the right type of marine insurance suitable for your business is extremely important in saving costs. There are various types of marine insurance coverage available such as cargo insurance, freight insurance, hull insurance, goods insurance/transit insurance, etc. You need to choose the policy that is suitable for the nature of your business. Choosing the wrong cover would only result in additional costs. Along with choosing the right type of policy, it is important to choose the right coverage type. Cargo insurance is a complex product and the coverage can be customised to your specific needs. Including the coverage that is needed for your business and choosing the policy with suitable features can get you the right policy at a reasonable rate of premium.
-
Higher deductibles
Choosing higher deductibles is one of the ways to reduce inland cargo insurance premiums. A deductible is a claim portion that you are responsible to pay. The relationship between the deductibles and the premium is inverse. Hence, if you can go for higher deductibles, you can keep the premium of cargo insurance significantly low.
-
Choose only necessary add-ons
While customising the inland cargo insurance policy, it is wise to choose the add-ons that are only relevant to your business. For example, every business may not require an earthquake extension cover while buying cargo insurance coverage. Add-ons come at an additional cost of a premium. Hence, it is important to analyse the requirement before you include them to keep the premium low.
-
Buy cargo insurance online
Buying cargo insurance online is one of the best ways to keep the premium low. Buying online eliminates the cost of intermediaries along with their influence on your decision. Hence, online policies are cost-efficient.
In conclusion, comparing systematically, shopping around, going for higher deductibles, choosing the right coverage, and buying online are some of the important ways to follow to keep your cargo insurance premium low. Regardless of business size, it’s crucial to secure affordable, suitable coverage for your business.
