The Importance of Cargo Insurance

Before understanding the importance of cargo insurance, let’s first focus on its definition. Through such policies, you get cover/compensation against loss/damage/theft of cargo.

Sometimes, you are obliged to purchase the insurance as a part of your sales contract. This is usually done to protect the interest of the bank or buyer. Ignoring insurance may invite lawsuit or loss of sales.

To obtain the cargo release after a general average, it might be crucial to post a bond and cash deposit. The insurance service provider expedites the cargo release when you purchase an insurance policy.

So, what’s covered under an insurance policy?

Under this insurance, damage due to infestation, inappropriate packing, customs rejection, harsh weather, sinking, and non-delivery are covered. The international shipping agency you have chosen can guide you on this in detail.

It is equally important to focus on choosing the right service provider. Compare the quotes of different companies. Ask what’s covered and what’s excluded in the policy. You should know the procedure to get compensation in case your cargo gets damaged.

In some cases, the shipping companies suggest you the right policy as per the cargo you plan to ship. Some international shipping agencies have a tie-up with insurers. A benefit of getting a combo deal is that you can save some money on your consignment.

When searching for the best US shipping agency, you can trust American Lamprecht. They offer a range of solutions revolving around logistics and supply chain.