Cargo Insurance. (Why it is worth it’s weight in Gold)
Cargo Insurance. (Why it is worth it’s weight in Gold). What do we mean?
If you have ever had a cargo claim and not taken out separate cargo insurance in advance you probably already know. If you haven’t you don’t want to find out the hard way.
Before we go into the reasons, we would like to point out that cargo insurance is not compulsory and in some cases is not available, but below is why we think it is worth considering. Also Beat My Freight Quote is not a freight service provider. We do not make money by selling insurance.
All the freight companies offering their services on Beat My Freight Quote will be operating under Standard Trading Conditions. These conditions are usually set by the National Freight Association of the country where the freight company is located and are standard amongst most freight companies operating there.
The Standard Trading Conditions set out the terms of the agreement (Contract) between yourselves and the freight company. They set out the responsibilities and for insurance probably the most important part the Compensation. Like most companies freight agents have Limited Liability when engaging in their business activities (Transportation of other peoples goods). The compensation the freight agent must pay is often set by the National Freight Industry body. In many cases the compensation falls well below the value of the items shipped.
The benefits of Cargo Insurance are:
You can insure for the Full Value of the goods plus the shipping charges
Insurance companies are likely to make a faster pay out than a freight company. It is often easier to deal with the insurance company. Freight agents are often chasing a supplier for compensation before they will pay you and many suppliers will do anything to avoid paying out.
Insurance is often very competitive
To get cargo insurance you must request it in writing to the freight company before shipping preferably before the goods are collected. It is not enough to request a price and say you thought you were covered. Unless you instruct them to actually arrange insurance you may be refused full compensation in case of a claim.
The insurance cover will have clauses and exclusions. It is your responsibility to check that the policy covers your requirements. If you are not sure you are covered make sure you get assurance preferably in writing that you are. In the event of a claim you will be thankful you checked.
You insure your car. You insure your house and contents. Why would you not insure your goods that are being sent across the world?