Why Do You Need Insurance for Your Cargoes?

You are the answer, because you are a shipper.

Choosing to risk your cargoes is one option. The other one is cargo insurance.

Many shippers choose to risk importing and exporting cargoes without insurance, and many of them suffer from great losses. Cargo insurance reduces shippers’ exposure to cargo loss. Shipping cargo is a long journey full of danger. There are so many people, companies, and ports included when shipping your container. Many hands involved will increase the risk of damaging your cargo. Whichever carrier you choose to ship your container, you can expect that in the case of damage, they will do their best not to take responsibility. Consider the value of the goods you are shipping, and how much of this amount will be covered by the carrier.

Cargo damage is so common, so you should always consider that your cargo is under risk.

The most common damages are theft, storms, crushed containers, ships sinking, losing a container at sea, etc.

Besides piracy, with today’s technology, identity theft is one of the most common elements of cargo theft. Fictitious pick ups are increasing day-by-day. Although there are many ways to prevent cargo theft, the best and most secure way is to insure your cargo. Remember, even the most careful shippers can fall victim to cargo theft.

Another common fact is more containers get lost at sea day-by-day. According to research by the World Shipping Council, there has been a significant rise in cargo containers lost to sea. This is one of the top reasons why shippers choose to get insured.

Cargo damage is even more common than the first two.

There are numerous of reasons for cargo damage, such as the wrong choice of container, container conditions, overloading, packaging, ventilation, poor container inspection, cleaning, wrongly-placed containers, etc. This list can continue, with many more possible reasons. Each one of them can be considered a good reason to get cargo insurance.

You also need to consider catastrophic events, such as storms, shipwrecks, and explosions. Every year, a lot of shippers suffer from these events, and a very large number of shippers regret their decision not to get insured.

With insurance, you will also be able to expedite cargo release, based on the insurance type you choose. When you purchase insurance, companies assume the responsibility and expedite the release of your cargo.

Do not think that none of the above will happen to your cargo.

All of them are the most-common issues. The best way to keep your cargoes secure from all of these is to get your cargoes insured.