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Cargo Insurance covers loss and/or damage of cargo while it is in transit between the points of origin and final destination. Goods may be transported by sea, air, or land.
Cargo Insurance is essential for businesses engaging in international trade, especially those shipping large quantities of goods by boat. Specific terms and benefits vary widely across the world and many Cargo Insurance Policies are custom tailored for specific shipments, but a few general principles apply to the entire industry.
Different types of Cargo Insurance exist. Policies are available to protect the goods while in transit on the ship, but damage can occur while the ship is in port, while the goods are in transit to the warehouse or while at the warehouse itself.
Protecting the value of your goods is the primary benefit of Cargo Insurance. While you have the option of sending your freight without any insurance, if you do so you would bear the entire financial cost in the event of damage or loss of your shipment.
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