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Insurance ForCargo

Insurance for Cargo: The Rundown

Should you be insuring your cargo? Learn more about insurance for cargo so you can decide what kind of coverage you need to make sure you’re taking on an acceptable amount of risk when you ship your freight.

What is Cargo Insurance?
Cargo insurance essentially acts as an additional layer of coverage to make sure that you will be reimbursed if the freight you ship is lost or damaged in transit. It’s a very comprehensive insurance that covers incidents that carrier liability insurance often doesn’t cover. It helps to ensure you get back the full value of your freight if anything happens.

There are various classes of cargo insurance, each with their own requirements and levels of coverage, some of which include:

  • All risk
  • Warehouse to warehouse
  • General average
  • Free from particular average

Make sure that you are purchasing the right type of insurance for your particular situation.

Carrier Liability VS Cargo Insurance
Carriers are required to carry insurance on their loads. That insurance is known as carrier liability. The amount of coverage is typically figured per pound of freight. While this carrier insurance does offer some coverage for your freight, it’s not all encompassing. This coverage generally doesn’t cover the full value of the freight, and there are some reasons you might not get a paid at all. If the freight was damaged by an Act of God or it’s found that damage was incurred because of your packaging, you may not be reimbursed for damaged freight at all.

Do You Really Need Insurance for Cargo?
If your freight is worth more than what is covered by the carrier’s liability insurance, it’s likely that you may want to purchase the additional insurance cargo insurance offers.

Crossing Your T’s and Dotting Your I’s When It Comes to Cargo Insurance
There are a few things you can do to ensure that a cargo insurance claim goes as smoothly as possible. First, make sure that you document the value of your freight carefully, and it certainly doesn’t hurt to document each load to show that it was undamaged and packed appropriately before shipping.

If your cargo is damaged in transit, it’s important that you submit your claim within the outlined time limits and that all appropriate documentation is submitted along with your claim.
Wondering if you need to purchase cargo insurance when you ship with BlueGrace, or maybe you’re wondering how to do so? Check with one of our experts!