4 Tips for Purchasing Cargo Insurance
For many of our clients, international shipping is the only way to get the job done. However, no matter how many times you’ve dealt with the process, it is still incredibly vital to have top-notch insurance coverage. Here are four tips for purchasing cargo insurance.
Tip #1: Make Sure the Policy Covers a Variety of Scenarios
Unless you are extremely lucky, anything is possible when it comes to international shipping. In fact, sometimes things just occur even though you’ve done everything in your power to prevent them. Take time to look over your cargo insurance policy to ensure it covers a variety of different scenarios—everything from bad weather to sinking ships to terrorism.
Tip #2: Check Your Contracts Before Purchasing a Policy
In some cases, your contract may dictate the type of cargo insurance you need. Look at the fine details and determine whether or not the buyer is requiring a certain level of coverage or if there are any specific obligations you need to meet in terms of insurance. Failure to meet this requirement could spell trouble in the form of a breach of contract if there’s ever a loss and that could cost your company thousands of dollars.
Tip #3: Check the Cargo Damage Clause
It is also extremely important to double check your policy’s cargo damage clause. Some insurers exclude things like lack of export packaging or poor monitoring of temperatures. This means that if even of these excluded scenarios cause damage, your claim could be void. Instead, opt for an insurer that covers a broad spectrum of potential damage reasons.
Tip #4: Discuss Your Exact Shipping Needs with Your Insurance Agent
There are no two shipments that are exactly alike. Discuss your exact shipping needs with your insurance agent to ensure you’re getting the right policy parameters for your situation.
Ready to learn about shipping rates and door-to-door delivery? Contact our JML Corporation team today for further information.