According to the NICB, cargo theft is a $15 to $35 billion industry in the United States. This makes land and marine cargo insurance a key necessity for shippers who may suffer from the loss of valuable cargo. Some carriers may not take responsibility for theft, damage, or loss to cargo, so shippers can end up paying out of pocket in a worst-case scenario.
Cargo can get damaged during loading and unloading especially if it is improperly packaged or stored during transit. Human error can occur and road or marine accidents, lack of ventilation, and collisions can lead to damaged cargo.
Most shipping contracts have a minimum cargo insurance amount listed that companies need to adhere to in order to do business with buyers. Not having enough coverage can damage your professional reputation and lead to fewer repeat customers.
At sea or on land, there are plenty of natural disasters that can impact the condition of your cargo. Having cargo insurance for shippers can help pay for container damages and any losses that take place on your journey.
At the end of the day, it is better to be safe than sorry especially if you’re shipping valuable or hazardous cargo. This is why having cargo insurance can help limit your liability as a shipper.
Read on to learn more about good insurance options for transportation companies at Assured Standard!
Ora has been working in the insurance industry for close to a decade, which means she’s dealt both with clients and insurance providers.