The Role of Cargo Insurance for Your International Business
Businesses that sell their products all over the world need to consider the whole world in their business model. This is especially true when it comes to shipping. By incorporating large cargo shipments, businesses can reduce overall costs for themselves and their customers. But sending thousands, and sometimes millions of dollars worth of merchandise off on a ship or a plane does not come without some level of risk. This is what makes cargo insurance so important for international businesses. But exactly what is covered in a cargo insurance policy can vary, and it is important for businesses to work with someone knowledgeable about the industry as a whole to help them determine what they need.
Cargo insurance falls under the category of Marine Insurance and is meant to protect businesses if there is damage to their property or it is lost. It covers this property whether it is traveling by air, sea, in inland waterways, or land travel. It also covers both finished products as well as raw materials or components. Like nearly all insurance, businesses receive this protection in exchange for paying a regular insurance premium.
Insurance of Foreign Trade Operations
The insurance of foreign trade operations takes insurance to another level. Not only does it cover property itself, but can soften the blow of responsibility. In most cases, the exporter and importer share responsibility to some extent, much like drivers in an auto accident share responsibility to varying degrees. With cargo shipments deciding who is responsible for what happens when those involved have a registered foreign trade contract. If division of liability can not be clearly agreed upon by the importer and exporter, a default international point-of-sale practice.
Getting some sort of trade insurance is important for international businesses because it is designed to cover unexpected surprises that can occur during the point of sale and when foreign investments come into play. Sometimes this is referred to as Export Credit Insurance. For even more protection investment insurance that covers international investments is also something to consider.
Finding the Right Cargo Insurance
It is the responsibility of every international business to determine how much cargo insurance they need, and which features are necessary, but these decisions can be confusing. Working with an experienced and reputable full service International Freight Forwarder can lessen the confusion when it comes to getting the necessary coverage.
JML, a respected Cargo company since 2003, works from offices and warehouses in the Miami, Florida area as well as the British Virgin Islands and provides logistics solutions for inbound and outbound deliveries with the bulk of our business taking place in the U.S and throughout Latin America. Over more than a decade we’ve grown and are providing more and more services including personalized customer service, storage services, transport and distribution services, and help with choosing the right cargo insurance solution for your business,