In international trade, securing merchandise during transit is not just a good practice; it’s a necessity. That’s why, in this article, we explain what cargo transport insurance is, how it works, and how you can choose the best option for your business.
Without further ado, let’s get started!
Cargo Transport Insurance: What It Is and How It Works
International transport insurance is a tool designed to protect goods from the moment they leave the seller’s premises until they arrive at the buyer’s location.
The insurance covers the cargo, regardless of the mode of transport used, as each one comes with specific risks (air, sea, or land), which can have a significant impact on the integrity of the products.
- By Sea: Extreme conditions at sea, such as storms or large waves, can severely damage containers and their contents. Improper stowing may also cause shifting and internal collisions that damage products.
- By Air: Turbulence and sudden maneuvers can physically damage goods. Additionally, temperature and pressure variations within the cargo hold can affect sensitive products.
- By Land: Traffic accidents, poor road conditions, and improper handling during transfers are common during land transport, which can lead to damage to the cargo.
Transport insurance offers various coverage options tailored to the needs of each company:
- Specific Risk Coverage: Protects against events detailed in the policy, such as theft, fire, or collisions.
- All-Risk Coverage: Covers almost any damage, except those expressly excluded.
- Perishable Goods Coverage: Ideal for sensitive products like refrigerated food.
Always assess the needs of your business and work with a specialized advisor to choose the right coverage. On our platform, you can quote everything in one place.
Is Cargo Insurance Necessary for Short Distances?
Definitely!
While some companies may think that short routes pose less risk, the reality is different. If any mishap occurs, even if minor, not having insurance would make identifying the responsible party and claiming damages complicated.
Benefits of International Transport Insurance
Protecting your goods during transit offers multiple advantages:
- Financial Peace of Mind: Ensures your company’s financial stability in case of any unforeseen events.
- Economic Compensation: Covers losses from theft or damage.
- Trust for Your Customers and Suppliers: Demonstrates that your company is prepared for any eventuality.
- Risk Reduction: Prevents disruptions in your supply chain.
Risks of Not Having Transport Insurance
When uninsured goods are damaged or lost, dealing with the problem incurs high costs and delays. Additionally, the relationship with carriers and suppliers may deteriorate due to the lack of prompt solutions.
Hiring insurance not only protects your business but also allows you to focus on your objectives, leaving risk management in the hands of experts.
How to Choose the Best Transport Insurance?
In a world filled with uncertainty, international transport insurance is a key investment to prevent losses and ensure the success of your operations. Remember, it’s better to be prepared for the unexpected than to regret it later.
ComexPoint makes it easier to purchase international cargo insurance by integrating various logistics providers, offering price comparisons and customized options for each operation. This allows companies to select the option that best fits their needs and receive detailed quotes that provide a clear overview of the operation.
Protecting what’s important is always a priority!
