Understand different types of freight insurance and how to protect your cargo against loss, damage, and delays.
Freight insurance protects against financial losses from cargo damage, theft, or loss during transportation. Understanding coverage options and requirements ensures adequate protection for international shipments.
**Types of Coverage**
Marine cargo insurance covers goods during ocean transport, while inland marine insurance protects domestic shipments. All-risk coverage provides comprehensive protection, while named perils coverage protects against specific risks only.
**Institute Cargo Clauses**
Standard insurance terms include Institute Cargo Clauses A (all-risk), B (named perils), and C (limited named perils). These clauses define coverage scope and exclusions for marine cargo insurance.
**Valuation Methods**
Insurance value typically includes invoice value plus freight and insurance costs (CIF value) plus a percentage for profit or additional expenses. Proper valuation ensures adequate coverage without over-insurance.
**Coverage Exclusions**
Standard exclusions include inherent vice, ordinary leakage, war risks, and strikes. Additional coverage may be available for excluded risks through separate policies or endorsements.
**Claims Procedures**
Prompt notification, proper documentation, and evidence preservation are essential for successful claims. Survey reports, photos, and witness statements support claim submissions.
**Certificate vs. Policy**
Insurance certificates provide evidence of coverage for specific shipments, while open policies provide ongoing coverage for multiple shipments. The choice depends on shipping frequency and volume.
**Carrier Liability Limitations**
Carrier liability is typically limited by international conventions and may not cover full cargo value. Additional insurance fills the gap between carrier liability and actual cargo value.
**Risk Management**
Proper packaging, handling instructions, and carrier selection reduce insurance claims and may qualify for premium discounts. Risk management programs demonstrate commitment to loss prevention.
Adequate freight insurance provides peace of mind and financial protection, making it an essential component of international shipping risk management.
**Types of Coverage**
Marine cargo insurance covers goods during ocean transport, while inland marine insurance protects domestic shipments. All-risk coverage provides comprehensive protection, while named perils coverage protects against specific risks only.
**Institute Cargo Clauses**
Standard insurance terms include Institute Cargo Clauses A (all-risk), B (named perils), and C (limited named perils). These clauses define coverage scope and exclusions for marine cargo insurance.
**Valuation Methods**
Insurance value typically includes invoice value plus freight and insurance costs (CIF value) plus a percentage for profit or additional expenses. Proper valuation ensures adequate coverage without over-insurance.
**Coverage Exclusions**
Standard exclusions include inherent vice, ordinary leakage, war risks, and strikes. Additional coverage may be available for excluded risks through separate policies or endorsements.
**Claims Procedures**
Prompt notification, proper documentation, and evidence preservation are essential for successful claims. Survey reports, photos, and witness statements support claim submissions.
**Certificate vs. Policy**
Insurance certificates provide evidence of coverage for specific shipments, while open policies provide ongoing coverage for multiple shipments. The choice depends on shipping frequency and volume.
**Carrier Liability Limitations**
Carrier liability is typically limited by international conventions and may not cover full cargo value. Additional insurance fills the gap between carrier liability and actual cargo value.
**Risk Management**
Proper packaging, handling instructions, and carrier selection reduce insurance claims and may qualify for premium discounts. Risk management programs demonstrate commitment to loss prevention.
Adequate freight insurance provides peace of mind and financial protection, making it an essential component of international shipping risk management.