Is Cargo Insurance Worth the Cost?

We totally get it: Running a business is not cheap and the budget can quickly become overrun with expenditures. Materials, equipment, facilities and staff are all necessary line items you need to produce and turn a profit. But what about cargo insurance programs? Can you get by without them or are they just as critical to your company’s success?

Lack of Insurance Can Sink Your Ship

It is best to answer this question with an example of a legal principle used when transports are performed by ocean carriers. If the vessel is damaged at sea or the call is made to jettison your goods in order to save the ship, you are partly responsible for sharing and covering the losses. Carriers are not obligated to cover losses that happen for reasons beyond their control.

You could lose hundreds of thousands of dollars in goods if you do not carry insurance. This amount of money far outweighs the price of a premium for any policy. The cost of cargo insurance programs varies from roughly $0.15 to $0.35 per $100 value of the shipment and most policies cover your goods throughout the entire supply chain.

Without insurance, you could end up financially shipwrecked. However, for a modest fee, you can focus on continuing to do business and stop worrying about the state of your goods as they make their way toward their destination.

How to Shop for Insurance

When it comes to shopping around for insurance in VA it can be a little stressful. There are so many coverage options and insurance agencies willing to help businesses with their needs. It can be hard to know where to start. With these three tips on what to look for, however, you can find the right agency for you in no time.

Look for Experience

Don’t settle for someone that hasn’t been at the top of their game for years. Some insurance agencies have been leading the way for many years. You don’t have to settle for anyone that isn’t experienced or specialized in your particular business needs.

Look for a Fast Quote

You don’t have time to wait around when you have a business to run. Finding insurance in VA is imperative to the life of your company. You’re not going to want to waste your time waiting on a quote when you could still be looking. Make sure that they offer you a quote quickly.

Look for Versatility

A firm that has many different specialties can help you in all aspects of your life. It’s good to be able to find a solution to all of your insurance needs in one place. If you’re looking for more than insurance for your business, then being able to find it at one firm can be convenient and beneficial.

Insurance shopping can be overwhelming. However, when you know what you’re looking for it can narrow down the search quickly.

Cargo Insurance Protects Your Business

Port Miami is one of the largest container ports in the nation. In 2013, it handled almost four million tons of cargo coming into the port, and a little over four million tons going out. It docked 1,348 cargo ships. With so many shipments being handled every day, your cargo has the potential to get misdirected, lost, or infested with pests. If you deal in food, it can spoil with an unforeseen delay of delivery. Pirates and customs holdup can also threaten the receipt of your cargo. Cargo insurance in Florida is the solution to keep your business from losing money on valuable shipments.

When purchasing cargo insurance, it insures your freight from beginning to the end of its journey. Your insurance also offers you more resources to make sure your delivery is not delayed. Think of your insurance agency as another shipping partner that helps you mitigate your loss. If you’re trying to find better methods to expedite your shipping experience, work with the people who know how to manage your account and shipping documentation.

Cargo insurance in Florida provides peace of mind when you have a large amount of money tied up in inventory that is traveling a long distance. Ask your insurance company about the insurance your business needs to protect its assets and future. Don’t risk everything you’ve worked so hard for by not having adequate coverage.

Protect Your Business with Cargo Insurance

The shipping industry is full of risks and anyone who runs a business moving items from point A to point B knows that the best protection is often preparation. A cargo insurance policy is one of the best ways to ensure that your business has the coverage that it needs to stay functional no matter what situations arise.

 

Transit Risks

 

Moving products comes with its own set of unique risks. Insurance underwriters create policies based on the particular situations that are faced by those involved in the shipping industry. Some of the risks that they take into consideration include:

 

  • Collision
  • Rough handling
  • Theft
  • Non-delivery
  • Natural disasters
  • Jettison
  • Overturn

 

Cargo insurance is used by companies that ship by truck, air, sea, or rail and often include coverage for every step of the transit process.

 

Insurance Programs

 

Because the shipping industry is so varied, there are many different types of insurance programs available. Underwriters can customize a program depending on the specific needs of their clients and often include one or more of the following:

 

  • High Value Cargo
  • Stock Throughput
  • Warehouse to Warehouse Coverage
  • International and Domestic Coverage

 

Cargo insurance is an essential investment for anyone in the logistics industry. Coverage against damage or loss can be the difference between a growing business or one that flounders.