Cargo Insurance
Cargo insurance is important for several reasons, as it provides financial protection and risk mitigation for businesses involved in the transportation of goods. Here are key reasons why it is crucial to buy cargo insurance:
Protection Against Loss or Damage
Cargo insurance provides coverage for loss or damage to goods during transit. Whether goods are transported by sea, air, land, or a combination of modes, the risk of accidents, theft, and natural disasters exists. Insurance ensures that the financial impact of such events is mitigated
Global Supply Chain Risks
In international trade, goods may pass through various countries with different transportation and handling standards. Cargo insurance helps protect against risks associated with global supply chains, including customs delays, political unrest, and acts of piracy.
Carrier Liability Limitations
Carriers, such as shipping lines or trucking companies, typically have limited liability for lost or damaged cargo. Cargo insurance bridges the gap between the carrier's limited liability and the actual value of the goods, offering more comprehensive coverage.
Temperature-Controlled Cargo
For goods that require specific temperature conditions, such as pharmaceuticals or perishable goods, temperature-controlled cargo insurance can provide coverage in case of temperature deviations or equipment failures during transit.
Financial Security for Businesses
For businesses involved in trade, the value of the transported goods is often significant. Cargo insurance provides financial security, ensuring that businesses can recover their losses in the event of unforeseen circumstances.