Cargo Insurance - Protection For Your Shipments
By Michael Bliss

Why do you need to buy cargo insurance? The plain answer is: You ought to buy cargo insurance for peace of mind. The function of this type of insurance is quite clear: It covers your commercial shipment or personal property in case of accidents when transferred by vessel, truck, train or airplane. And accidents can and do take place. During the nationwide transport or international shipping your cargo is exposed to possible damages & losses: piracy, tough weather, acts of God or other unexpected situations. It was designed to protect the cargo owner's fiscal interests while the cargo is in transit from the seller to the buyer. It is a very vital, but often left out aspect of the international transaction or a simple household goods move. It seems that people genuinely understand the grounds for insuring their personal residency, automobile and other valuables but tend to consider unnecessary when it comes to insuring cargo shipment.

Did you know that when you move your commodity, vehicle, household goods by air, ocean or land with any transport carrier and damage or loss occurs, the contingent shipment insurance they offer will pay you only... $0. That's not a great deal and by law that's all they're expected to pay you, because contingent insurance is completely subject to the carrier's legal liability and their terms and conditions (tariffs). You'll be able to purchase a broader shipment insurance coverage with some carriers, but at very high costs and the coverage will still be bounded by their liability and tariffs and probably based on the item weight and not the value. With contingent insurance, you run a risk being postpaid very little for your loss. What you need is primary insurance coverage for all types of shipments, not the limited contingent type provided by freight carriers & moving companies. As a result, manufacturers and exporters turn to the cargo insurance brokers that meet the need for full-value-based insurance to protect your shipment.

Fortunately, finding a reliable freight insurance company is not a problem. Search for an insurance underwriter rated A++ with AM Best and AAA with Standard & Poor's (their maximum ratings). These 2 companies are independent insurance rating providers who issue the financial effectiveness ratings of all insurance companies. Established underwriters can furnish the coverage for material loss or damage to cargo while in transit, either internationally or domestically. You can obtain freight insurance coverage for any value from a humble $100 package to million dollar cargoes. It doesn't matter who's handling your shipment - you can get shipment insurance coverage for any common carrier. It's not unusual to save up to 50% compared to carrier insurance and up to 25% over traditional primary commodity insurance directly from the underwriter. You'll obtain your own consignment insurance policy with the loss payable directly to you or whoever you select, unlike coverage of freight carriers in which they extend you under a blanket policy that encompasses everyone's shipment. Insurance policy refunds you for de facto losses or the "Stated/Declared Value of the goods", whichever is less, under the Terms & Conditions of the insurance you purchase.

This brings us back to the statement about the peace of mind: knowing that you won't suffer any financial losses should anything happen to your overseas or state-to-state shipment and you don't have to rely on the transport company to cover for any accidents.

Cargo insurance certificates for your international and domestic shipments. Insure your shipments of cars, boats, household goods and commercial freight. Easy online system, low insurance premium, top rated companies at shipping insurance website.

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