One of the popular and demanded services in the area of freight shipping is cargo insurance. There is always a certain risk regardless of transportation mode and cargo characteristics. You need to choose optimal conditions for the insurance program to protect your own interests.
What are the threats?
The risk of freight shipping depends to a large extent on the chosen mode of transport. Thus, air freight shipping enhances protection against theft but increase overall costs as well, moreover, the use of air transport is not always reasonable.
The main risk factors are the following:
- technical accidents, transport incidents, natural disasters (damage or destruction of uninsured cargo together with transport);
- malicious intent of the carrier, service personnel or unauthorized persons (theft, intentional damage);
- personnel incompetence, nonobservance of transportation terms (damage, spoilage).
Why is it important to choose the right insurance program?
- effective cost/ risk ratio;
- consideration of actual threats without imposed services;
- integrity of the insurer.