Insuring your cargo against damages may seem like the most reasonable thing to do. Especially if you’re a business owner involved in shipping large quantities of goods. However, many people in the world today do not buy into the idea of shipping insurance. Shipping Insurance provides protection against the damage of goods, damage or loss of ships, terminals, cargo and other goods of transportation by ship. Many cargo insurance companies have emerged over the years. They may reimburse senders whose parcels are lost in transit.
However, there are some common misconceptions people have about shipping insurance. While you may think you know it all, here are some of the common misconceptions people have about shipping insurance.
You Might Assume That The Carrier is Responsible:
One of the questions that you probably have on your mind about shipping insurance is, ‘Who is responsible for a specific type of loss?’ The person sending the product to a particular destination almost always assumes that the carrier is responsible for damages and losses to the products being transported. The sender thinks that he/she will be compensated by the carrier if the product is somehow damaged or lost in transit. However, this is wrong. The fact is that carriers cannot be held responsible for any damage or loss incurred by natural disasters. Even if there is a loss or damage, and the carrier is at fault, the carrier is still entitled to collect ALL freight charges.
There Is No Need For Any Additional Insurance Coverage:
Some say, “My cargo is covered under the carrier’s insurance policy. There is absolutely no need for any additional insurance coverage”. This is also false. Anything can happen to your goods and products in transit. Natural disasters especially are unpredictable. Although it doesn’t happen all the time, your goods could get damaged or wet on board. Owners and shippers have to make sure that their products are packed well. But senders need to buy the right shipping insurance coverage customized for every possible unexpected disaster that could happen. Relying on your carrier’s insurance coverage or the supplier might not be not enough. Obtaining a separate cargo insurance gives the owner control on the type and amount of protection.
The Buyer Or Supplier Is Providing The Insurance Coverage:
This may be true for some type of products. But the coverage provided may cover only certain risks and leave you vulnerable to others.
Everything Will Be Covered In The Event Of a Loss:
Shippers are encouraged to verify the type of coverage they are being provided by the insurance company. There may be limitations which will prevent ALL losses from being covered.
There you have it, four common misconceptions about shipping insurance. Understanding what shipping insurance entails and how you can make full use of it to secure your cargo is essential for everyone in the trading or e-commerce business.
This article was written by I’m Emmanuel Ozigi, a biochemist in the making from Nigeria. In my spare time, I’m a science, health, and fitness blogger. I also specialize in graphic design and photo editing. I also have this insatiable hunger for information and the desire to learn new things. Visit my blog at http://sciencehealth24.com.