Cargo Insurance
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Trucking is the most popular way to transport goods from point A to point B. Companies utilize it for the transport of food items, furniture, electronics, and tons of other retail goods. People who are moving their business or moving into a new home will also be transporting cargo from one place to the next. Cargo insurance provides coverage for damage to freight or physical loss of freight, as well as other risks that can arise while shipping products, goods, or belongings. Cargo insurance can extend beyond items transported by truck and can also cover items that are shipped by boat, airplane, or other air, sea, and land vehicles. Another name for cargo insurance is freight insurance. By covering a wide range of transit types, cargo insurance is an important part of national and international trade alike. There are numerous types of cargo insurance, which will be explored in this article. Businesses need this insurance to cover a plethora of risks involving the importing, exporting, and transportation of goods. Once you are familiar with the types of plans you are interested in, Fontana Trucking Insurance is here to assist you in getting the best prices for cargo insurance available for your situation.
| Type of Cargo Insurance Coverage | Typical Coverage Limits |
| General Motor Truck Cargo Insurance | $100,000-$300,000 |
| Pollution Liability | $10,000 or more |
| Trailer Interchange | $20,000-$30,000 |
| Hazmat | $5,000,000 or more |
| Livestock Cargo | Varies |
| Debris Removal | $10,000-$25,000 |
| Catastrophe | $1,000,000 |
| Earned Freight | $1,000-$25,000 |
What Is Cargo Insurance?
There are many types of cargo people can be transporting, including merchandise, materials, property, and other goods. Cargo insurance is covered under risk policy or floating policies, protecting people from physical loss or damage to what is being transported. Vehicles and companies are unable to get payment for the transportation of the goods if these goods are not safely transported. Prepaid freight is payable in advance. This is at the risk of the owner of the cargo, who includes the value of the goods insured through a cargo policy. Freight payable only has payment made upon delivery of the goods at the destination. This is at the risk of the shipowner. The shipowner will have insurable interest and it and, therefore, can get insurance for the goods.
| Policy Limit | Typical Range in Cost (per year) |
|---|---|
| 50k limit | $400 – $700 |
| 100k limit | $800 – $1400 |
| 250k limit | $1,100 – $1,800 |
Does Cargo Insurance Have Limitations?
Cargo insurance does have limitations, and there are many sections of it. Time insurance on freight and charters and anticipated freight can be obtained, and insurance lasts for a specific period. If a ship is lost, it can also result in the loss of the ship's profit-earning capacity and can result in the termination of freight contracts that have already been entered into. A specific amount of freight is insured by a shipowner for 12 months under the Institute Time Clauses. Additional policies can be purchased on a voyage basis. If the fright at risk on any voyage exceeds the amount of it insured for time, the Institute Voyage Clauses is then used.
Cargo insurance can be quite complex, and contacting the exceptional team at Fontana Trucking Insurance can help you get set up with a plan that suits your needs. If you are getting this type of policy for the first time, you may have a lot of questions. Speaking with a representative here can get those answered for you, and the team at Fontana is ready to get you free quotes from multiple companies so you can get a top-quality plan at the best price available.
| Coverage | Typical Limit |
|---|---|
| General Cargo Insurance | $100,000 – $300,000 |
| Pollution Liability | $10,000+ |
| Debris Removal | $10,000 – $25,000 |
| Earned Freight | $1,000 – $25,000 |
| Catastrophe | $1,000,000 |
Types Of Cargo Insurance
Cargo insurance has coverage of loss or damage, including losses or damages caused by war, civil war, revolution, rebellion, insurrection, civil strife, hostile acts, seizure, arrest, restraint attainment, salvage charges, riots, strikes, and more. Trade coverage provides benefits pertaining to the needs of specific types of cargoes of general nature. There is coverage that is more specific for commodities and foodstuffs, which can have different hazards overall. Many companies have adopted uniform trade practices. The team at Fontana Trucking Insurance is highly knowledgeable and can explain the pros and cons of the different types of cargo insurance and recommend policies to you. Common types of cargo insurance include all risk, free of particular average, and shipment by shipment.
Benefits Of Cargo Insurance
Fright insurance, also called cargo insurance, has benefits with both international and local trade. Approximately 90% of cargo that is transported internationally is moved by sea. If you own, or are starting, an import-export business, you are aware of how important cargo insurance is. The ability to deliver products in their proper condition is essential, and you want to be financially protected in case of emergencies happen. These businesses invest large amounts of money to ship products. Numerous aspects are covered under the benefits of cargo insurance. This includes assistance relating to damages due to inappropriate packing, damages due to infestation, cargo abandonment, customs rejection, employee dishonesty, damages due to collision, damages due to heavy weather, derailment, or sinking, and non-delivery, theft, and fire, among other things. Contact the team at Fontana Trucking Insurance to get started with free quotes and have your questions answered today.