You know that your customers demand certainty from your products and services. The primary purpose of all types of insurance is to protect your most important assets. Millions of things can go wrong when shipping freight. Supply chain logistics are typical of accidents, spoilage, damage, theft, and more. An effortless way to boost certainty in your business and maintain happy customers is to invest in freight insurance. You buy insurance for your health, technology, car, and home, so why treat your freight any differently? Freight insurance benefits your business and stakeholders in the long run when issues arise.
Carrier liability is the lowest amount of coverage available for your freight. Every shipment you book is included in the total rate. The carrier decides the coverage you will receive based on your load and company policies. Unlike carrier liability, freight insurance, also known as cargo insurance or goods in transit insurance, will protect your freight under various circumstances at a better rate. You will receive more payment when accidents occur by investing in freight insurance, no matter how large or small your claim is. Natural disasters, pandemic-related shutdowns, loading and unloading errors, infestation, abandonment, theft, customs rejection, fraud, and more are all covered under freight insurance only. The uncertain repercussions from COVID-19 uncovered even more reasons to invest in freight insurance and shows why it is more important now than ever.
Freight insurance and carrier liability are often misinterpreted for one another since they both protect your cargo.
There are two types of freight insurance based on transportation: marine cargo and land cargo.
If you decide to move your products internationally, consider investing in marine cargo insurance. Marine cargo insurance is important since shipping overseas is more complex than moving domestic LTL and FTL shipments. Marine cargo insurance covers transported goods via air or water. If your business ships internationally, take your time researching marine cargo insurance options.
As the name implies, land cargo insurance provides coverage for your goods moved on the road. However, land cargo insurance is typically only applied to domestic shipping.