What Is Cargo Insurance?
In accordance with the law, all carriers should carry a minimum amount of insurance, referred to as carrier liability. But, carrier liability provides very limited coverage, and anything from natural disasters to vehicle accidents or even acts of war could damage your cargo. Therefore, cargo insurance is important for protecting the goods from loss, damage, or stealing while in transit. Generally, goods are insured while being stored and while in transit, until they reach the customer.
Types of Cargo Insurance
Cargo insurance can be taken for international as well as local transportation. Simultaneously, this is really difficult to standardize and control without the proper cooperation from countries and states due to the varying nature of this insurance. Under these variations, this insurance can be classified into the following categories:-
Land Cargo Insurance: This type of insurance provides coverage against all risks of physical loss or damage to freight during the shipment from any external cause during shipping by trucks and other small utility vehicles. The coverage aspects are theft, collision damages, and other related risks. This insurance is domestic in nature and normally, operates among the boundaries of the state.
Marine Cargo Insurance: This type of insurance covers transportation carried out either in the sea or by air. The coverage aspects are damage due to cargo loading/unloading, weather contingencies, piracies, and other relevant issues. Mostly, this insurance covers international transportation.
Visit Tenax Transport today for more information and updates about the Cargo insurance.