What is freight insurance?
Freight insurance offers and provides safety to merchant vessels' corporations, which stand a chance of losing money in the form of shipment, lest the consignment is misplaced because of the ship meeting with a mishap. This indemnity solves the trouble of companies losing money because of a few first-time events and accidents.
Why do you need to buy freight insurance?
The plain answer is: You ought to buy freight insurance for peace of mind. The reason for this type of insurance is quite clear: It covers your commercial shipment or personal property in case of accidents when transferred by vessel, airplane, truck or train. And accidents can and do happen. During the shipping (whether nationally or internationally), your cargo is exposed to possible damages & losses: piracy, severe weather, acts of God or other unexpected situations. Freight insurance was designed to protect the cargo owner's interests while the cargo is in transit from the origin to its destination.
Types of Risk
There are three main types of risks associated with cargo transport. Insurance covers all of these depending on which coverage is used. They are:
Types of freight insurance policies
How much freight insurance do you need?
It is good to go all in when buying cargo insurance. There is an absolute peace of mind that comes with knowing that you won't suffer any financial losses in case of accidents is enough reason to ensure your cargo.
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