Cargo Insurance - Why it's absolutely vital.
Importers of goods and products know that when their freight is in transit, they are prone to risk that can damage or cause the loss of their shipment. If a shipment was lost at sea because the container ship sank, the carrier liability is usually not enough to cover the value of the freight. If a truck was involved in an accident, two assets were lost, the truck and the cargo.
So, it is reasonable to conclude that it's absolutely necessary to opt for safeguarding your cargo with an insurance policy.
So then, what is Cargo Insurance?
Cargo insurance protects you from financial loss due to damaged or lost cargo. It pays you the amount you’re insured for if a covered event happens to your freight. And these covered events are usually natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.
What are the benefits of Cargo Insurance?
The primary benefit of cargo insurance is that you minimise your financial loss even if your shipment is damaged or lost. The small investment (a.k.a. the premium) you pay provides peace of mind as your goods leave your warehouse.
It also includes these advantages for your business:
Your cash flow is protected from unforeseen stoppages
Profits are still generated if coverage includes it
Efficient procedure of claims because of professional service
Simplified reporting of losses
Great, but when do you need cargo insurance?
Generally, it’s always advisable to get cargo insurance for your shipment even if it’s not required by law.
Your freight is exposed to a lot of risk as it moves through different hands, different trucks, and different ports. There are also external factors such as weather and traffic conditions.
So the longer it is exposed to risk, the more likely it is to be lost, stolen, or damaged.
Also keep in mind that even if the carrier is legally liable, their limit is usually less than the value of goods that are commonly shipped.
How do I go about getting cargo insurance?
There are many cargo insurance policies out there, we’ll source quotes for you from all the reputable insurance firms in Malta, including your insuring company, and compare the rates for you.
As well as offering you service that is second-to-none, our range of highly competitive policies enables you to make the best advised decision to your insurance requirements.
Getting a quote is simple, head over to our quick quote form HERE and we'll contact you back and get the process started.