Did you know that American trucks moved 10.93 billion tons of freight in 2021?
Yet even the most proficient drivers can’t completely prevent mishaps. Do you have your business covered if something goes wrong?
Wondering how to find a good plan for your cargo and how to make sure you have optimal coverage?
Read on to learn what you should keep in mind when purchasing cargo insurance.
1. Consider the Value of Goods Being Transported
One of the top five factors to consider when purchasing cargo insurance is the cost. If the goods are of a high value, goods-in-transit insurance can provide cover for the goods going from one place to the other.
This will include the goods from physical damage, loss, or theft, and may even cover the additional costs of delivery. Depending on the type of goods and their worth, cargo insurance could provide an additional level of protection.
2. Know the Type of Goods You Are Trying to Insure
When considering purchasing cargo insurance, it is crucial to know the type of goods you are trying to insure. This can help ensure that you are purchasing the right type of coverage, as certain goods may have more specialized requirements.
For instance, combining high-value items with more fragile items may require a higher level of coverage, as the likelihood of cargo insurance claims on these goods is higher.
3. Determine What Type of Coverage You Want
Another factor to consider is determining what type of coverage you want. The type of coverage needed depends on the type of cargo being shipped, the route of the shipment, and the type of carrier used. Depending on the type of goods you will ship, additional coverage may be required, such as for hazardous materials or high-value goods.
4. Ensure That the Insurance Is Tailored to Your Business
When purchasing cargo insurance, it is vital to ensure that the insurance policy fits the individual needs of our business. Every business has different needs and requirements for cargo insurance, so it is beneficial to shop around for the coverage that meets those needs.
Assess the value of the goods and the cost of replacing them if necessary. Every business has different needs and requirements for cargo insurance, so it is beneficial to shop around for the coverage that meets those needs.
5. Review the Cost of Coverage
When evaluating cargo insurance, it is best to consider the cost of the coverage the policy provides. The cheaper the policy, the less coverage it provides. If a policy offers a cheap rate but does not cover the entire shipment, then the customer would be taking the risk of not having the whole shipment covered.
If a policy is more expensive but covers more of the shipment, then it is wiser to invest in the policy with more cargo insurance premiums. Also, check if the company offers cargo insurance deductibles to enjoy sending your freight at a lower cost and the most secure one. If you want to know the cargo insurance cost, you can ask for quotes from a legit insurance company in your area for secured freight forwarding.
Consider These Factors When Purchasing Cargo Insurance
When purchasing cargo insurance, the top five factors to consider are value, coverage, liability, cost, and policy form. Consider what you need most to protect your company from potential losses.
Seek advice from a professional insurance broker to make sure you get the best package for your needs. Don’t wait; take action to protect your business today!
Did you find this article helpful? Check out our other blog posts for more informational topics.
