One of the key parts of the process of transporting merchandise is goods insurance. This consists of a contract whereby the insurer assumes responsibility for material damages or losses that the merchandise might suffer during its transit via river, air, rail, or sea.
Insurance is not mandatory; however, it is extremely advisable to have it, as this ensures your shipment is exempt from any mishap throughout the entire transit, from its origin to the planned destination.
What Does It Entail?
It is based on compensation to cover possible damages caused during transport and is usually agreed upon in advance through contracts. It can cover anything from minor repairs to a full replacement of the merchandise’s value.
Different Types of Insurance Exist!
Depending on several factors:
- Transport type: The means used (maritime, land, river/lake, or air).
- Object type: Insurance for transport vehicles, transported goods, interests, or liabilities.
- Contract duration: Temporary insurance or single-trip insurance.
- Coverage breadth: Minimum coverage (insurance against specific losses in some cases) or all-risk coverage.
Other factors to consider include the nature of the goods, the route covered by the insurance, layovers and storage, shipment dates, and the insured party’s claims history.
Choosing cargo insurance involves several important points to analyze when making a decision. However, at Framex, we always aim to simplify your processes so you can enjoy seamless logistics.
We take care of insuring our clients’ shipments at a cost below market average, offering door-to-door coverage.
