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Cargo Insurance

Cargo Insurance is useful to protect any goods that you are moving from one place to another. Whether your company is responsible for moving these goods or you are relying on a third party, it is good to have some kind of protection in place to account for risks such as fire, floods, theft, poor handling and other perils.

Cargo Insurance is commonly referred to as ‘marine insurance’ or ‘cargo marine insurance’ which makes reference to the way the goods are transported by boat or over water. However, this name can be misleading as it also refers to any goods or freight carried over air, road or rail. (Source: British International Freight Association).

Marine Cargo Insurance includes moving goods from one warehouse to another or delivering your products to the suppliers and wholesalers, whether in the UK or overseas. Other uses include:


Why you need Cargo Insurance

For any business owner, the goods you manufacture and sell are the essence of your business and making sure they get delivered in one piece is vital. However, once your product is handed over to the carrier for shipment, you have very little control over the safety of the cargo. Even if the third party transporter or freight forwarder has insurance, you may not receive full compensation and will have to suffer the financial losses. Therefore, having cargo insurance can be absolutely essential to make your business run smoothly.

At Be Wiser Business Insurance, we have policies to suit every kind of business and their needs. So whether you are transporting goods from one place to another or are responsible for the physical shipping of these items, we can help find the right policy for you. For a free and no obligation quote for your business, simply call us today on 0333 999 0802. You will speak to one of our certified advisors who will ask a few questions about your business and goods that you transport and discuss the options available to you. We can provide cover for the following cargo:

goods-in-transit

Types of Cargo Insurance

According to The London Institute of Underwriters, there are specific clauses for cargo insurance that policies will fall under: Institute Cargo Clauses A, Air, B and C

There are additional clauses available to address strikes by the workforce or being involved in a war conflict. So if your cargo falls under these conditions, you will need to include this clause in your policy.


Exclusions in Cargo Insurance

Policyholders must be aware of the exclusions prior to purchasing insurance as this will not be included in Clause A and will make the policy void if you wish to make a claim. The exclusions are:


What is The Insurance Value of the Cargo?

When deciding how much you should insure your goods for, the general rule is that you take the cost of the goods plus the cost of shipping them and add an additional 10% to cover the claims administration such as paying the excess. This will determine how much you need to insure your items for.


Freight Insurance – The Basics

Freight Insurance is relevant for those transporting third party goods for other companies and is suitable for couriers, hauliers and freight forwarders. When transporting someone else’s goods, you have a duty of care to make sure that it gets to its destination safely.

There are several things that can happen to a product when being transported by car, air, sea or rail. If you have cars, bikes and trains on route, you can never be sure if there is going to be a road or rail accident and how this will impact all the freight you are transporting.

Fragile goods are always at the risk of being damaged or broken during transportation. Valuable goods are always vulnerable to thieves and foodstuffs can go rotten if not placed in the right conditions. Boxes and crates can also go missing or get lost due to poor handling and organization.

Also known as goods in transit insurance, having the right cover in place means that the cost of any losses or damages can be recovered and the value can be repaid to the client through your insurance. This can be better than having to settle the losses out of your own pocket.


Freight Forwarders Insurance and Liability

Freight forwarders are those logistic companies that are transporting goods on behalf of another company. They have the means of transportation such as bikes, vans or trains and they act as the ‘middle man’ between getting those goods to its final destination, whether it is just in the UK or overseas too.

Liability cover and insurance is not automatically offered to the customer when they are shipping goods (Source: Gov.uk). However, companies can usually choose to add this when they are transporting items with a freight forwarder. Adding insurance can be considered a good way to automatically add value for the customer and since you are likely to be liable for any damages, it should be essential.

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