When your business needs moving products, you must ensure that the freight reaches its destination safely. Sending goods and getting them delivered is a priority but safety is more important, alongside prompt delivery according to the schedule. Today, businesses rely on freight transport companies to move their goods. Moreover, freight forwarding companies are engaged in order management, storage, and inventory management alongside shipping and delivery.
Hence businesses can completely relieve themselves from the responsibilities while their freight transport partner monitors all these processes. At the same time, shippers can access the full details of order execution, shipping and delivery from their end. We all know shipping and logistics management is a complex process involving many aspects that create havoc anytime in the pre-planned schedule. Therefore, certain factors pose a problem for safe transit, even though it is not very frequent. At this point, cargo insurance comes in handy for shippers. For the safety of every shipment you make, you need to rely on cargo insurance in the first place. But how do you ensure you select the ideal one?
Let’s see what exactly cargo insurance is and how it helps shippers to prevent damage and loss due to theft and pilferage during goods transit. But at the same time, cargo insurance does not cover all types of losses. However, it safeguards goods from certain damages and serves as a boon for shippers who always send their freight to distant places through road, marine and air transportation.
Cargo Insurance Explained
Cargo insurance protects against risks of loss arising due to damage of freight during its transit. Cargo insurance is advisable as it takes care of the goods from risks that result in heavy financial loss. However, before selecting cargo insurance, shippers need to consider the insurance costs against the potential threats and the damage incurs in the absence of such protection. Now, let’s see the benefits of cargo insurance coverage. Shippers should purchase insurance from their freight transport partner or providers. When you decide to pay the freight value, it offers absolute protection for the shipments in the event of risk of loss.
Benefits of Buying Cargo Insurance
A few advantages of selecting cargo insurance are as follows:
1. Risks Coverage
As aforementioned, coverage against the risk of loss is essential for every shipment in transit. Cargo insurance helps shippers and consignees bear losses during freight transport due to uncontrollable aspects. Usually, insurance covers damages due to handling, theft, pilferage or spoilage due to contamination. Cargo insurance policies cover these damages and risks of loss that may occur right from pick up to the delivery location and helps shippers to ensure complete protection of their goods in transit. It is ideal if shippers find an all-risk coverage provider who gives coverage for all the items against the risks in transit.
2. Reduces financial losses
Shippers suffer financial risks if the goods in transit get damaged or lost. Therefore, cargo insurance becomes essential for preventing catastrophic loss in the event of damage during transit. Your reliable freight transport partner provides cargo insurance coverage during the cargo transit from the origin to the delivery location. The financial burden of uninsured goods in the event of loss or damage affects the profitability of a business. Cargo insurance coverage ensures financial protection to the shipment from handling loss, poor weather, theft, fire, natural calamities and other common risks that may happen during the journey from pickup to delivery point.
3. Carrier Liability Coverage
Generally, carrier liability comes with limits, which implies that freight gets protected only for a certain amount of money. Hence a carrier is liable only for a limited amount. When the loss is over the specific limits, the freight transport partner does not incur liability for the additional amount. Either your carrier specifies it in the shipping contract or by laws and regulations. Under such instances, if you have insured the value of goods, there is no need to claim the total cost of damages suffered. It allows shippers to reduce the burden of loss of goods during transit. Carriers have the absolute freedom to alter the limit in the shipping contract based on each situation.
4. Supply Chain Disruption Risks
Cargo insurance covers supply chain disruption due to delayed deliveries from interruption during transit and non-arrival of freight. Under such cases, cargo insurance covers net profit or the additional expenses incurred. In some cases, it safeguards against the risk of revenue loss resulting from delay in start-up of cargo. This type of coverage helps suppliers cover the risks arising due to uncertainties in the supply chain. It does not require them to suffer a loss, but the revenue loss due to delayed delivery gets covered under such instances. Such cargo insurance coverage helps shippers and consignees relieve themselves of unexpected supply chain disruptions during freight transport.
Freight Transport through Ianis Cargo
You can rely on one of the forerunners in freight forwarding services in Europe for transporting your freight through land and air. Access freight transport services such as full truckload (FTL) service, less than truckload (LTL) and express transport, where you can hire a dedicated vehicle to move your goods from one location to another. In addition to offering several customer-centric services to optimise freight rates, Ianis cargo arrives at shipping prices using live shipping rates calculator. Also, you get 24/7 tracking, and customers can access the transit progress in real time! The digitised platform compares price quotes from several reputed couriers and sends its customers the lowest prices within seconds. Enjoy peace of mind when you move freight and parcel deliveries through Ianis Cargo.