The Top 3 Costs of Cargo Damage

freight insurance

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.