What is Cargo Insurance?
Cargo insurance provides coverage against physical loss or damage to freight during transportation by sea, air, or land. Depending on the policy terms, this insurance can cover various incidents, including accidents, natural disasters, theft, and piracy. Policies are usually tailored to the nature of the goods and the specific risks involved in their transport routes and methods.
Who needs Cargo Insurance?
Cargo insurance is essential for manufacturers, exporters, importers, and logistics providers. It protects their financial interests by ensuring that losses from damaged or lost cargo do not adversely impact the business. This type of insurance is recommended for any company shipping goods, especially those transporting valuable, perishable, or fragile items.
What are the common types of Cargo Insurance policies?
The most common types of cargo insurance policies include "All Risk" policies, which offer comprehensive coverage against all transportation risks except those explicitly excluded in the policy; "Named Perils" policies, which cover only those risks that are specifically named in the policy; and "Free of Particular Average" (FPA) policies, which cover only total loss and not partial damage, except under certain conditions.
