Though goods and cargo shipped via land, air or sea are generally reliable, packages still get lost and damaged. Thus, this insurance is required to protect against loss, damage or theft during transportation. But, what is the meaning of shipping insurance and what does it cover? You’ll find all these answers in this blog post.
What is Shipping Insurance?
This insurance is vital for keeping your products safe while in transit. The insurance can act as a safety net against a variety of potential problems, such as theft, damage, improper handling, and more. By paying a little extra to insure your shipments, you can save yourself a lot of headaches down the road.
This insurance is the service that protects the shippers against lost, stolen, or damaged packages. So, if the insured package does not reach its destination or is damaged when delivered, then the shipper is paid by the declared value items of the package.
What Does Shipping Insurance Cover?
It covers a wide range of services including:-
- Loss of Cargo from the container loss
- Handling damages
- Piracy
- Theft
- And other issues affecting the safe and secure delivery of freight.
For shippers and cargo owners, it can be a protector that helps in reducing the financial loss when a shipment is lost or damaged en route, which is especially likely when shipping internationally. It can give you peace of mind knowing that your investment is protected.
Thus, understanding the best policy for insurance coverage is vital and maintaining the insured shipping insurance coverage can help offset unexpected supply chain costs. Let’s learn more about it.
Land Shipping Insurance
This type of insurance coverage provides insured shipping for cargo and goods transported via utility truck, dry van, or train. Truckload package insurance is a great way to protect your shipments against theft, collision damage, and other similar risks. However, one potential drawback of this type of insurance is that it can be difficult to apply it to all aspects of fleet management.
Marine Shipping Insurance
Marine insurance refers to the loss or damage of ships, cargo, terminals and any transport by which the property is transferred, acquired or held between the origin and final destination. This insurance is designed to protect your cargo as it crosses international borders. In some cases, this type of insurance can also cover air shipments that are considered part of the overall shipping route.
All-Risk Insurance Policies
It is the broadest coverage of marine insurance policy. This type of insurance coverage provides blanket coverage for freight transportation experts. Generally, all-risk insurance for shipping will cover damage or a claim except if identified in the policy. However, if shippers only need general insurance for shipping and final mile delivery protection, then all-risk cargo and shipping insurance may be the better option.
Named Perils Insurance
In this insurance coverage, insured shipping only provides claim protection for what has been explicitly listed and delivered within the contract.
Summing Up!
An insured shipping package ensures safe shipping from the origin to the final destination. SecureNow is a tech-enabled insurance broker company that understands the wide scope of insurance policies and their coverage benefits. Our services are extensive, helping small and medium-size businesses by offering fair and quality insurance policies. Request a quotation or contact us to learn how we can simplify the insurance services for your business.
