A Guide to Insuring Your Cargo

What is Cargo Insurance?

Put plainly, cargo insurance offers protection on the goods you are shipping in the case that anything is damaged, lost or stolen. Cargo is insured for a dollar amount akin to its value so in the case that something happens to your cargo, you are compensated and able to replace the lost goods. The times that cargo is damaged or lost, it is most commonly due to a natural disaster, vehicle accident, theft, or rejection at a customs site. While each of these elements are closely monitored and ample precautions are taken to minimize the possibility of complications, these situations do happen and cargo insurance is here to protect you accordingly.

Do I Need Cargo Insurance?

Cargo insurance is very commonly used for most types of freight shipments because of the high commercial value they hold. Insuring one’s cargo is up to the party who is shipping but it is highly recommended by freight forwarders as to ensure the client will receive just payment in the event of any accident. Because there are elements that cannot be controlled throughout the shipping process, most notably being inclement weather, it is impossible to guarantee a safe delivery of every shipment so cargo insurance is highly encouraged, regardless of the overall value of a given shipment.

What Happens If I Don’t Insure My Cargo? 

If cargo is not insured, many times, it does not have a major effect on the client because more often than not, shipments arrived safely without any damage or issues. Insurance is meant to cover the client’s investment for those times in the minority; the shipments that, unfortunately, do go wrong. In such a case, the client will be returned any of the damaged cargo if appropriate but the value of the goods will be diminished significantly. 

How Can I Insure My Cargo?

You can go about insuring your cargo through the freight forwarder you’ll be using to manage your shipment. If you’re in need of a freight forwarder, LogiWorld and our team of international partners will work with you to insure your cargo shipment and get it to its final destination on time and safely. LogiWorld has no cap on insurance so even if you are shipping millions of dollars worth of cargo, we can insure your shipment with no problem. Contact us for a free quote on your next cargo shipment!

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