Cargo insurance is a type of insurance policy that protects the shipper against losses that can occur to goods while they are in transit from one place to another. There are various types of cargo insurance policies available, including all-risk policies, named perils policies, and open cover policies, each offering different levels of protection based on the shipper's needs.

Cargo insurance provides coverage for loss or damage to goods during shipping, whether by land, sea, or air. When a claim is made, the insurance company assesses the situation and compensates the policyholder according to the terms of the policy.

Understanding the terminology used in cargo insurance policies is crucial for shippers. Terms such as 'General Average', 'Particular Average', 'FPA (Free of Particular Average)', and 'Warehouse to Warehouse' are some of the key concepts that policyholders should be familiar with.

The Risks of International Shipping

International shipping involves complex logistics and a chain of custody that can span multiple countries and carriers. The nature of international trade introduces a variety of risks that can affect the cargo.

Risks during transit can include natural disasters, theft, piracy, damage during loading and unloading, and other unforeseen events that can jeopardize the safety of the cargo.

Why Cargo Insurance is Essential

Cargo insurance is essential as it provides financial protection against the loss or damage of goods, which can have a significant impact on a business's bottom line.

Having cargo insurance offers peace of mind to businesses, knowing that their goods are protected throughout the shipping process.

In some cases, cargo insurance may be a legal requirement or a stipulation by business partners or lenders to ensure that the value of the goods is protected.

Choosing the Right Cargo Insurance Policy

It's important for shippers to understand what their policy covers and to ensure that it aligns with the specific risks associated with their cargo and shipping routes.

Accurately assessing the value of the goods being shipped is crucial for obtaining the right amount of coverage.

Working with experienced insurance brokers and providers can help businesses find the right cargo insurance policy that meets their needs and budget.

How NATIVE LOGISTICS OÜ Can Help

NATIVE LOGISTICS OÜ offers expertise in navigating the complex world of cargo insurance, ensuring that clients have the appropriate coverage for their international shipping needs.

We provide customized insurance options tailored to the specific needs of our clients, taking into account the nature of the goods, shipping routes, and other relevant factors.