Freight Insurance
Protect yourself by protecting your cargo
Freight companies are run by professionals, and like any business, they value their
clients. You can bet that if you enlist the services of a trusted freight company,
they will be doing their best to provide you with great customer service and great
results.
Still, unforeseeable and unpreventable events can happen, which is why freight insurance
exists. There are a number of ways you and your freight company can work together
to protect your cargo in the event of accidental damage.
Advertiser Links for Freight Insurance
Company Insurance
Most shipping
companies will offer their own insurance packages as part of the cost of
shipping your freight. Also, if you are organizing your shipping through a freight
forwarding company, that company will also provide insurance (known as freight forwarders
insurance).
However, depending on your cargo, this coverage may not measure up to the worth
of your property – many times, it can just be enough to protect the company
from incurring losses, without consideration of the time and money you may lose
if your cargo is damaged. In this instance, it would be wise to consider outside
freight insurance sources.
Extended Coverage
There are two ways you can ensure your freight is protected when you transport:
- Pre-existing coverage. It may be that you already have an insurance package
that provides coverage on transportation of goods – such as personal insurance
or business insurance with clauses like general loss and property in transit. Some
credit card companies also provide shipping insurance if you use their card during
transactions.
- Freight insurance companies. If you don’t have an existing policy, there
are many companies who specialize in freight insurance policies for clients looking
for further coverage. Often, your freight company will be able to provide you with
names of freight insurance providers who can help you find the right policy.
The Three Rules of Finding Freight Insurance – Cost, Insurance and Freight
Before you sign up to ship, it’s important that you determine your insurance needs.
First, consider cost – extra freight insurance can come at a price, so you
may want to weigh this against the odds of actually needing it. If you feel like
you can get along without it, or that you can risk an accident, you could save yourself
some money.
Second, you’ll want to think about the insurance itself. What exactly is it covering
that you’re not getting elsewhere? If it will provide you with additional coverage
for loss of business productivity or sales in the event that you lose your cargo,
it may be worth shelling out the extra dollars. As stated above, you’ll also want
to make sure that you don’t already have coverage under another insurance policy,
to avoid doubling up.
Finally, it comes down to weighing the value of the freight itself. If you’re shipping
large quantities or expensive items, you’ll no doubt want to give your freight as
much protection as possible. But if it’s not an integral part of your business,
or if regular insurance will cover more than the cost of the cargo itself, extra
protection could be a waste.