What is Cargo Insurance?

Cargo insurance provides protection against all risks of physical loss or damage to freight from any external cause during sea freight, air freight, or by land.

FORESTSHIPPING believes that properly insuring freight, in conjunction with good physical risk management, is an important way to manage the financial impact of loss or damage. The cargo insurance includes options to insure from “warehouse to warehouse,” irrespective of the number of subcontractors involved, and covers common carrier limitations such as: “Acts of God,” terrorism, strikes, riots, and civil commotion risks.

  • Subject to certain packing exclusions, this freight insurance policy pays regardless of which carrier is ultimately responsible for the loss or damage.
  • Without cargo insurance,when you goods damaged by accident, this issue can have a frustrating economic impact on you.
  • This freight insurance policy will cover the goods for the full value declared and will not be subject to the limitation of a freight forwarder’s bill of lading.
  • Protect your errors and omissions insurance from liability claims, as you are not absorbing the deductible applicable to each claim under your legal liability policy.
  • Some freight forwarder’s liability is calculated based on the weight of the shipment, and may be limited to a few hundred dollars.
  • With full direct damage freight insurance, the burden of proof of liability is waived and claims are handled directly between the insurer and the customer. Insurers then subrogate where possible.

You must know the importance of the cargo insurance, it will cover the loss that caused by accident during the transit. It’s a good idea to transfer the risk from yourself to the insurance company.

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