Put simply, transportation insurance gives coverage to freight forwarders, whereas cargo insurance is designed to provide coverage to the sender of goods. Both these terms are often used interchangeably, but it’s very important to know the difference between them.
There always remains a risk that the goods being transported can be damaged or lost. The main purpose of transportation insurance is to protect the freight carrier from any financial loss sustained by the sender due to the loss or damage of shipment. The claim will only be payable to the sender if the loss or damage of goods is proven to occur because of the freight carrier’s negligence.
Getting transportation insurance coverage is a wise decision for freight carriers who want to play it safe. It is better to get covered from the moment you take possession of goods.
Cargo insurance helps the sender of shipment cover the full value of shipped goods in case of loss or damage. Besides freight forwarders’ negligence, cargo insurance also provides coverage in case of:
Cargo Insurance gives you peace of mind and keeps you confident about your shipping. The insurance policy also considers where the cargo comes from and where it is going, the freight forwarder’s route, and the cargo’s nature, weight, and size.
It is essential for both the freight carrier and sender of goods to get insurance. Having ample protection can ensure that if things go wrong, there is no big financial repercussion. Another important thing is to make sure that the goods are packed safely to mitigate loss during their shipping process.
To learn more about the insurance coverages you can benefit from, check out the rest of Assured Standard!
Ora Price is a licensed insurance producer. Since she majored in Finance at the University of San Diego, she knows how to deal with both clients and insurance providers alike.