Why Cargo Insurance Is Important

Obtaining Cargo Insurance in the process of transporting goods by whichever method chosen is a crucial aspect since you are responsible for handling and moving goods that belong to other parties that are relying upon your service. Therefore, obtaining the proper insurance coverage in this process plays a key role, especially when transporting by sea due to exposure to many hazardous situations including natural and manmade. Following are some of the factors related to cargo insurance, depicting the role it plays in the transportation of cargo by sea.
Protect your goods
The primary objective of cargo insurance is to protect the goods or cargo which is being transported from one place to another; in most occasions, from one city to another or overseas. Since the cargo is in the hands of your responsibility, it is necessary that the risks that may occur during transit, storing, handling and transport should be covered by all means in order to avoid further inconvenience for your and the customer as well.
International shipping
Comprehensive cargo insurance is considered the most vital when engaging in international trade. It is essential that international moving companies in Dubai take note to insure the goods at this level for the exporter or the importer will be at the risk of financial loss if the cargo has been damaged in the case of an exporter not being paid yet or if the importer has made a partial payment. At certain events though, a part of the cargo needs to be sacrificed in order to avoid total risk. It is the principle of ‘General Average’.
All risk and land shipping
The ICC A is the most comprehensive type of cargo insurance used by many where it is the ‘All Risk’ cargo insurance for most freight shipping companies. However, in the case of land shipments, there will not be full insurance but only limited liability coverage will be offered by the carriers which are not very expensive to afford. Therefore, if cargo is handled responsibly, you need not be tracked by global relocations by customers if delays take place.
Risk free cargo
At the end of the day, the ultimate goal of a shipper is to transport the goods/cargo to the receiver safely with no damage in sight. In order to ensure that they are in its original state, free of any defects or damages that occurred in the course of transporting them, it is important that the goods are insured accordingly under the relevant coverage so that in case of risks or damages, the loss can be recovered with no hassle.