Freight insurance protects your investment while in transit to its destination. Ground transporters may provide a standard insurance getting your product to the port of origin, but you will need insurance for the long journey overseas.

A lot of things can go wrong on a sea voyage. The shipping containers are stacked on the top deck of the cargo vessel, and while they are secure, the wide open ocean is not. Storms can cause very rough waters, even if the ship is not directly involved with the storm! Containers can break away and fall off into the ocean, never to be seen again. This is very rare but has happened in the past.

Containers are also open to the environment, so inclement weather can, and will, pound on the containers and in some cases, water can get inside the container just enough to cause damage. In some circumstances, containers that are stacked improperly can topple over onto other containers, damaging the contents inside. Freight insurance exists for all of these instances, knowing how to pay for this insurance is of utmost importance.

Freight insurance is usually offered per pound, which is fine if you're exporting products with little individual value but in enormous bulk. If your goods have a high value, however, you will want to insure based on the total value of the good being shipped. Some potential pitfalls to look out for would be, the guise of 'all-inclusive' insurance provided by a shipper – but which does not cover storm damage, for instance. Don't settle for the basic insurance the shipper provides, in other words, because you could be left with a total loss if they can blame the loss on an act of nature. There is always insurance available for any kind of loss, as long as you're willing to afford it. Keep in mind that most shipping companies are very professional and want to deliver their shipments in perfect condition; after all , this is how they get business.

Question? Post it on the Free Export INFO Blog

Share this Article: