Freight Insurance
Freight Insurance is coverage purchased by the shipper or the owner of the goods to protect goods or cargo from the risk associated with transportation while they are being transported from one location to another.
Freight Insurance, also known as cargo insurance, is a type of coverage that protects goods and merchandise while in transit. It provides financial compensation for losses or damages incurred during transportation, offering peace of mind to shippers and ensuring their investments are safeguarded.
Types of Freight Insurance
Freight Insurance policies come in various forms, tailored to meet different shipping requirements. Here are three common types of freight insurance:
Total Loss Insurance
Total loss insurance specifically covers situations where the cargo is completely destroyed or lost. It provides compensation if the shipment is damaged beyond repair or disappears during transit. This type of insurance is commonly used when shipping high-value goods or fragile items.
General Average Insurance
General average insurance applies when a vessel incurs a loss that is deliberately caused to save the entire shipment. In such cases, all parties involved in the shipment share the loss proportionally. General average insurance ensures that the parties are covered for their share of the loss, minimizing the financial impact.
All-risk insurance
All-risk insurance offers extensive coverage for your cargo, providing protection against a wide array of risks. This comprehensive policy safeguards your goods from accidental damage, theft, natural disasters, and even acts of war. By opting for all-risk insurance, you can have peace of mind, knowing that your cargo is adequately protected against the majority of unforeseen circumstances.