If your company delivers products on a regular basis, whether they are your own products or you have a delivery service, cargo insurance is a must. This type of coverage is usually broken down into either marine cargo insurance or air cargo insurance, depending on your mode of delivery. It protects the products from damage, loss, or theft.
Types of Cargo Insurance
The type of marine cargo insurance or air cargo insurance coverage you get will typically fall under the following categories:
- Basic Risk Coverage. This covers the partial or total loss of products being transported from a number of different perils, including collision with another boat (for marine cargo insurance), fire, lightning, theft, non-delivery, floods, or on-land collision to name a few.
- Total Loss Coverage. This type of policy covers named perils (usually the same you'd find from the basic risk coverage policies) and insures products from a total loss. In order for your products to be covered under Total Loss coverage, the entire shipment must be lost or damaged.
- All Risk Coverage. This is the most comprehensive form of coverage and covers a wide range of perils not covered from basic risk or total loss coverage, including damage due to loading and unloading, war, or theft to a portion of the delivery. It's also the most expensive, and typically has a deductible that is a percentage of the entire value of the shipment.
Air Cargo Insurance and Marine Cargo Insurance Coverage
A basic policy includes a number of exclusions, so it's important to read your policy carefully to find out what is and what is not covered. Most basic policies exclude the following:
- Damage from improper packing
- Employee dishonesty
- Cargo abandonment
- Damage due to air pressure or temperature extremes (this applies to air cargo insurance)
- Customs issues, such as confiscation or rejection of goods
If you find your policy has exclusions you want covered, you can either upgrade to a more expensive policy or find out if your insurer offers add-on coverage.
Finding Affordable Coverage
Whether you're in the market for air cargo insurance or marine cargo insurance, NetQuote.com is a great resource for finding the coverage you need at an affordable price. Here, you can research different types of coverage so you know exactly what you do (or don't) need. From there, NetQuote.com allows you to compare multiple quotes for free to ensure you get the lowest price and the best coverage possible.
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