Understanding the Benefits of Cargo Insurance
1. Q: Why should companies and individuals shipping products by marine transport purchase Cargo Insurance?
A: Marine Cargo Insurance protects your investment, and covers your goods for loss, damage or delay. Without cargo insurance, all cargo is handled, stored and carried at the Shipper’s, Owner’s and Consignee’s risk.
2. Q: Is all Marine Cargo Insurance the same?
A: No. While each marine Cargo Insurance policy might be different, the purpose is the same; to protect you and your company from suffering a financial loss. Some Cargo Insurance carriers offer insurance on a per pound basis, others on a value of the cargo being shipped. It’s always best to check with your transport provider at the time you book your cargo, to discuss your options and determine what is right for you.
3. Q: How does this benefit me or my company?
A: The primary benefit of cargo insurance is that it protects your investment, which could otherwise have a negative impact on your bottom line. The loss of supplies and/or materials could be particularly difficult for a small-to-medium sized company. A relatively small investment can provide significant peace of mind.
4. Q: How much Cargo Insurance is right for me or my company?
A: There is no one size fits all answer. We recommend that you discuss this with your marine transport insurance provider.
5. Q: Is there anything else I should ask?
A: Yes. Understand your marine transport provider’s terms and conditions of shipping. It’s also helpful to ask a few simple questions about the claims process, primary coverage, and whether or not your items will be covered if any loss or damage occurs.
6. Q: Are there things I can do to ensure my cargo is packed properly?
A: Yes. Following the basics of safe packing will help to ensure that your cargo arrives in the same condition that it was packed in, when it was loaded. Recognize that cargo may be transported in the “hold” of the vessel or on deck.
- Ensure that your cargo is packed to withstand the elements.
- Complete and apply the correct labeling to each of the shipping boxes or containers.
- Finally, ensure that you have your booking number, insurance and any other documents completed, processed and ready for presentation as required.
7. Q: Where can I get more information about Marine Transportation Services cargo insurance?
A: Review the Space Reservation Booking Note and Cargo Insurance
and Liability Waiver form or contact Marine Transportation Services.