The Top 3 Costs of Cargo Damage

When you’re a company that relies on shipments of goods or parts from somewhere else, you can be subject to some significant losses if something happens to that shipment along the way. By understanding those losses and knowing how to protect yourself from them, you can make the right choice for your business. Options like freight insurance, for example, can help keep your business whole when the unexpected occurs.

1. Money

When a shipment is damaged, either all or in part, there can be a significant cost involved in replacing what was lost. Time is often of the essence, so extra charges for rush orders and express shipping or freight charges can increase that substantially in many cases.

2. Production or Delivery Time

Whether it’s parts needed for manufacturing or goods sold directly to a customer, when your shipment is lost to damage or theft you can’t deliver your products on time. In a retail environment, it means empty shelves which, of course, lowers sales.

3. Customer Satisfaction

When customers don’t get what you promised them on time, it creates a negative customer experience that can harm your reputation and chance for repeat business. It can also lead to the kind of word-of-mouth advertising that no business wants.

Considering freight insurance is a smart way to protect against the costly risks to your business when vehicle accidents, natural disasters, theft or other factors cause a partial or total loss of goods.

Finding the Right Transit Insurance for Your Company

If you ship goods, supplies, or equipment around the world, you know that there are a universe of potential pitfalls that can affect your company. That’s why it is important to have access to the transit insurance programs that will cover your liability in the event of damage to your cargo or your equipment. Only then can you be sure that your risk management strategies are comprehensive enough to cover you under every circumstance.

Reviewing Coverage Areas

Whether your business is shipping for other companies or you are managing your company’s own interior logistics, you need protection that covers your workers, your company equipment, and most importantly, the items you are carrying. You also need it to be comprehensive enough to provide protection from the time you pick up a shipment to the time it is delivered, even when it isn’t in motion. That means finding coverage that includes:

  • Project cargo coverage
  • Worldwide marine cargo coverage
  • Transport liability coverage
  • Worldwide stock throughput protection from catastrophic events

By bringing all those forms of insurance together, transit insurance providers are able to make sure your company has each and every contingency handled. That way, you can focus on doing the work that you are there to do instead of worrying about your risk management strategies.