TUESDAY, FEBRUARY 6, 2024
 Transportation companies rely on cargo insurance policies to safeguard their financial interests in cases of damaged or lost cargo. If you're seeking reliable cargo insurance coverage, we recommend reaching out to Sebrite Agency, Inc., a trusted insurance provider based in Hopkins, Minnesota. The team will gladly provide a personalized quote tailored to your needs.
Cargo Insurance: What Is It?
For businesses that rely on shipping to transport their products, it is essential to acknowledge that numerous unforeseen circumstances can potentially result in damage or loss once the cargo is beyond the organization's control. In such cases, cargo insurance plays a vital role in offering crucial protection to companies that heavily rely on the supply chain to ensure the safe delivery of their goods.
What Are the Different Types of Cargo Insurance?
Depending on the insurer, businesses may have the flexibility to choose from three primary types of cargo insurance:
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Road or surface transportation insurance
- Marine cargo insurance
- Air transport insurance
Cargo insurance policies can also encompass various modes of transportation. Your agent will be able to recommend suitable coverage options based on the specific transportation methods utilized by your organization.
When it comes to cargo insurance, you generally have two main options. Your agent may advise you to consider purchasing one of the following:
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All-risk cargo insurance policies: These policies provide comprehensive coverage for risks, excluding only those specifically mentioned as exclusions by the insurer.
- Named peril cargo insurance policies: These policies are more restrictive and offer coverage exclusively for perils explicitly named in the policy.
Furthermore, certain cargo insurance policies may come with geographical limitations. Collaborating with your agent will enable you to determine the most appropriate coverage that aligns with your company's specific requirements.
What Does Cargo Insurance Cover?
Cargo insurance provides coverage for various scenarios related to stolen, damaged, or lost shipments during transit via land, sea, or air. If a covered event transpires while the insured cargo is in transit, the insurer may offer reimbursement to the insured party for the specified value of the goods.
Covered events typically encompass a range of circumstances, such as cargo abandonment, acts of war, vehicle accidents, natural disasters, or customs rejection. To gain a comprehensive understanding of the specific coverages provided by your insurer, it is recommended to consult with your agent.
Are You Required to Have Cargo Insurance?
The Federal Motor Carrier Safety Administration (FMCSA) may mandate the necessity of cargo insurance, depending on the nature of your business’s operations. However, it's important to note that each type of motor carrier has distinct minimum levels of financial responsibility requirements. Work with Sebrite Agency, Inc. to determine if your business is required to carry a certain type or amount of cargo insurance.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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