Goods are being shipped around the world every minute of the day. Because of globalization, developed and underdeveloped countries have created stronger trade relations that are mutually beneficial. But while business may be going well for cargo and shipping companies these days, it only takes one disaster to turn everything around.
The cargo business is volatile, complex, and ever-changing. Shipping and freight delivery services are regularly exposed to threats that could result in substantial financial losses. Thus, any business involved in the transport of goods should carry cargo insurance to protect their interests.
What is marine cargo insurance, and what does it cover?
Marine cargo insurance covers transported goods. Despite its name, it is not exclusive to sea cargos – it includes air and land transfers as well. The products are insured while in transit and storage from their point of origin to their destination.
Aside from shipping and transport coverages, commercial marine insurance protects the company from liabilities in case of third-party injuries and property damage as well. If the injured or affected party files a claim and seeks compensation, the policy will cover legal expenses and pay for the costs of damage.
If the policy includes freight insurance for cargo vessels, it may also cover business losses due to lost or damaged vessels.
Why do you need cargo insurance?
Although most shipments arrive at their destination in good shape, there’s no telling when unfortunate events and accidents will happen. And when they do, they can affect your entire operation and cause a massive strain on your finances.
Prepare for the storm; make sure you have the right commercial marine insurance policies in place. Bennett and Porter can help you build a cargo insurance portfolio that’s tailored to your business’ needs.