Cargo insurance is a vital part of the freight shipping process. At Texas International Freight, we always recommend that our customers purchase cargo insurance for all their shipments. Shipping any kind of cargo is a complicated procedure and a certain amount of risk is going to be involved. Consequently, getting insurance for your shipments will mean peace of mind for all involved, even if the worst should happen.
Shipping freight means there is a risk of cargo being damaged or lost, whether that is from going overboard, being stolen or mishandled or, even, war. Fortunately, there are various cargo insurance options available that cover these eventualities. Insurance coverage generally covers the cost of the goods plus the cost of freight with an additional 10% on top of that.
In our experience, we recommend that customers obtain their own cargo insurance, then in the event of lost or damaged cargo, customers can guarantee that they will receive their payout. It can be difficult to redeem insurance if going through a freight carrier as they often only offer liability insurance. Therefore, it is a good idea to do your own research to find the most suitable cover for your shipment.
There are a number of different types of insurance policy. At Texas International Freight, we offer an All-risk policy. This insures goods from physical loss or damage caused by external factors, including risks from war or civil commotions. It also includes some clauses such as warehouse-to-warehouse and both-to-blame.
However, there are some exclusions to bear in mind. These will be specified on your insurance policy with Texas International Freight. For example, for the insurance policy to be valid, one specification will be that the cargo arrives at the exit port in a good state. Otherwise, you risk not receiving a payout if an accident does occur.
A key thing to remember in regard to cargo insurance is general average, a concept that has become better known following the Suez canal blockage. If a vessel is damaged, or even goes down, general average may be declared by the carrier. In that case, all parties with cargo on board the damaged vessel are liable for their prorated portion of the loss, even those who suffered no damage to their own freight. Consequently, the need for insurance for all shipments is clear to see.
Alongside cargo insurance, shipments require other documentation including bills of lading, certificates of origin, and legalization and consularization services. Sometimes validation of shipping documents by a legal authority, such as a consulate or embassy, is required. Contact Texas International Freight to find out more about our expertise in these areas.