Cargo insurance is also termed as freight insurance coverage. Cargo insurance coverage provides coverage against all risks of physical loss or damage to cargo during shipment from any external cause while shipping. External cause includes whether by land, water, air and any other external factor.
Benefits of Cargo insurance
Following benefits comes under cargo insurance
- Damages due to ill-suited packaging.
- Dishonesty of employee’s.
- Damages caused by collision.
- Damages caused by fire.
- Damages caused due to bad weather.
Types of Cargo Insurance Coverage
Some common cargo insurance is
- All risk insurance policies, covers any loss or damage caused by any external source.
- Free of particular average insurance policy also known as Named peril insurance policy. It excludes theft includes all other external sources which causes loss or damage of a cargo.
- Shipment -by –shipment insurance policy, this policy includes criminal act too and also includes all external sources of damage.
There are a few pointers that you must keep in mind while opting for a coverage for your cargo. It is suggested to visit https://www.hkpli.com/product-liability-insurance/ for more knowhow and information ahead. Cargo insurance is necessary for a cargo to protect it against any damages or loss which occurred due to any cause. Even goods are also insured before transporting in a cargo. If you have done proper insurance it will be beneficial, if any damage or loss occurs. Please try to take insurance policy from a nice organisation so no fraud will take place.