Cargo Insurance with Business Insurance San Diego
Cargo Insurance refers to any policy covering cargo in the care, custody, or control of a carrier, either by land (truck) or sea (ship). This insurance exists to protect shippers from loss or damage to goods while in transit. Additionally, goods are safe while being stored and while in transit, until they reach the buyer.
There are risk factors that might happen during shipment and cargo often passes through several hands from here and there before reaching its final destination. As a result, the cargo can be in the worst condition if the shipment is stolen, lost or by negligence.
Types of Cargo Insurance
Land Cargo Insurance: This type of insurance provides coverage for all the land transportation covering trucks and other small utility vehicles. This insurance is domestic in nature and normally, operates within the boundaries of the nation.
Marine Cargo Insurance: This insurance covers transportation carried ours either in the sea or by air. Commonly, this insurance covers international transportation. Below are the following policies, which can help you in understanding the concept of cargo. These are:
Open Cover Cargo Policy
For this policy, there are two categories namely renewable policy and permanent policy. The renewable policy requires for a particular value requiring renewal after policy expiration. Most of the single trip or voyages fall under this category. On the other hand, the permanent policy can have a decided time period permitting countless shipments in that period.
Specific Cargo Policy
When a company approaches an insurance company or broker for insuring a particular consignment, and then it can fall under the category of specific cargo policies. These policies are also termed as voyage policies because only shipments are covered under them.
Contingency Insurance Policy
This policy recommends sellers because of its very less premium rate. For testing and verification, sellers need not tell about it to their customers.
Protecting Your Business with Cargo Insurance
Transporting cargo without insurance leaves your business vulnerable and could end up in a huge potential loss. Depending on the type of cargo involved in the transaction, leaving your assets unprotected might have a devastating impact on your bottom line, so it’s important to set up the right coverage. Business Insurance San Diego can help you figure out what works best for your business. We’ll work with you to assess the risks and determine the best policy to help secure you and your assets.