Cargo Insurance: When Should You Select A Shipping Company Who Provides It?
When you ship items, you may believe they will be sufficiently protected until they reach their destination, but it may not always be the case. While carriers do follow protocol to ensure the safety of the shipments they carry, unforeseen circumstances could harm your items, and at worst, even result in total loss. If your cargo does not have coverage, the resulting loss will be borne by you. Therefore, choosing a shipping company that provides cargo insurance can be crucial whether you are dealing with domestic or international shipping. This article will explore the situations when it is mandatory they provide this additional layer of protection to your shipments.
What is cargo insurance?
It is an insurance cover purchased by the shipper to ensure payouts in case of damage to their shipment. While all carriers do have insurance called carrier liability, it provides limited coverage and is usually paid based on weight and not the value of the goods. This may not be adequate for your shipment and could result in an enormous loss.
Cargo insurance acts as an additional layer of protection and can be used to protect your shipment. This insurance is typically based on value and not weight so that you can recover the actual amount of money spent on the package. It also has a broader coverage and ensures you are reimbursed regardless of where in the shipping process the damage occurred. The items will be insured while they are being stored and in transit until they reach the recipient.
When should you get it?
If the items being shipped are expensive or have sentimental value.
The value of your items is usually directly proportional to whether your shipping company must provide insurance. Packages of low value typically do not require insurance, as they are inexpensive to repurchase. However, cargo insurance will be compulsory for items that are more expensive or difficult to replace due to sentimental reasons.
If there is a possibility of excessive handling.
If the shipping process involves various parties and the possibility of the package being handled is high, it is safer to purchase insurance. It can be challenging to track who caused the damage, making it impossible to claim compensation. As such, it is necessary to speak to our shipping company in Dubai and find out the process for your item, so you can decide whether the insurance will be required.
If ocean shipping is involved.
Ocean shipping, unlike the other modes of freight transportation, can involve significant stress for your package. They could be exposed to extreme conditions and will be at risk of shifting due to the ship’s tilting movements. Consequently, the risk of damage can be quite high, making it crucial to obtain cargo insurance.
Cargo insurance can provide a cover of protection for your packages and ensure that you will not be significantly affected in case of damage. They are also affordable as their price depends on the value of the shipment and typically is only 3%. Hence, unless you need to keep costs extremely low, we recommend always choosing a shipping provider regardless of whether the situation deems it necessary. If you want more information regarding our shipping procedures and the benefits you can receive, contact us at Extra Space. Our international movers and shipping specialists will help you.