We already covered the types of freight insurance in the previous article. This article is about the Freight Insurance Coverage and its policy
You should know about the freight insurance when you are moving your goods through the freight.
Let's take a look!
Don't be surprised if a freight insurance broker offers you different rates depending on how frequently you ship freight. As a result, coverage policies can differ to meet your business requirements.
All risk coverage provides you with the most certainty against external risk. In addition, it will provide settlement for damaged freight due to natural disasters, negligence, poor packaging, customs rejection, abandonment, WSRCC (war, strikes, riots, and civil commotions), loss of use or market, failure to pay or collect, and more.
This coverage policy is standard in a B2B supply chain setting. Warehouse to warehouse policies protects your shipment when transported from a cargo ship to a warehouse. This policy typically includes maritime cargo insurance, but it is important to specify this beforehand with your carrier.
Also called voyage policies, a single coverage policy is an excellent option if shipping irregularly via maritime. For example, if you begin introducing your business to the international market and start small, a single coverage policy is your best choice.
Contingency cargo is strongly affiliated with freight brokers. For example, sometimes products are damaged in transit, and the carrier may refuse to pay. A freight broker steps in with a contingency policy and can compensate for your claim.
Named perils policy, also known as "free of particular average," protects your freight against damage caused by the ship. This policy includes collision, sinking, derailment, non-delivery, heavy weather, fire, and theft.
General average policies are less common but still important to understand. With a general average insurance policy, you share the responsibility of the damaged cargo with all stakeholders. For example, costs incurred from a fire that damaged 15 percent of freight on board will be split amongst all owners and shippers. Therefore, average general insurance can protect you from these costs.