How does the insurance on international freight work ?
Shipments control is increasingly difficult given the many different ways of transporting goods (land, air or sea). Trade has grown very strongly throughout the world, even with the least developed countries, where the weakest logistics infrastructure may not be good for freight delivery.
Managing your risks
To monitor and reduce the risk of loss or damage our customers will be able to rely on a specialized entity. Thus Siam Shipping provides a risk prevention service (known as Marine Loss Control Engineering).
International is our middle name
Siam Shipping has a strong international network that will provide you the best protection possible for the strengths of our customers and their commercial reputation. All this thanks to a pragmatic commercial approach and a great technical expertise.
Customers expect real results in terms of manufacturing and delivery, in fact technological advances has increased customer expectations. It is therefore necessary to secure the supply chains, that is to say who must monitor the disruptions affecting the loyalty, the reputation of the company or even the cash flows.
The full range of solutions
Whether door-to-door, delivery warehouse to warehouse by sea, land, air or rail an insurance exists. No matter the merchandise and where it is located we can cover your various projects.
Our claims and service strengths
Clients will be accompanying throughout the process, we seek to have strong and lasting relationships. Our experience in this market and our offices around the world brings us an exemplary reliability.
To have further information about how to operate an insurance, get further info on the website of International Association of Insurance Supervisors (IAIS)
Who is it for?
- Manufactured, transportation, construction company and a multitude of other companies
- Cargo project with consecutive loss coverage (ALOP – Advanced Loss of Profit)
- Freight services (freight forwarders wishing to offer freight transport insurance to their customers)
- All exporters and importers
What is covered?
Between the departure and the arrival of merchandise in transit, the coverage provide for a complete coverage of the risks of loss or breakage. No matter the type of track used maritime, land or air. This includes all risks, the Cargo Institute (A) clauses or the Cargo Clauses of the Institute of Perils (C).
- It’s not an insurance contract. There are conditions for each contract.
- The contract must be read and understood by the user, it is necessary to understand the insurance coverages before any decisions
The loss of freight during its transit is covered by cargo insurance. Even if the goods are transported by sea, air or land. As soon as one enters the international trade it is essential to ensure his cargo, especially if it carries large quantities of goods by boat. There are many different types of coverage in freight. The specific benefits vary according to needs and are often customized. There are general principles that apply to the industry as a whole.
Different Types of Cargo Insurance
Several types of insurance exist. They cover possible damage during transport but it should be borne in mind that certain problems may arise while the ship is in port or in transit to the warehouses or even within it. The guarantee clauses can cover all these different problems. Or it can be done individually to provide cumulative coverage for all the locations of your assets. The main advantage of cargo insurance is the protection of the value of your property. In case of non-subscription of this insurance you will have to pay the entirety of the financial cost in case of damage or loss of your goods. Legal action against the carrier is a long and complicated process, international law limits the carrier’s liability. All risks coverage, is the most comprehensive insurance for cargo guarantee. For insurance to work, it must be packaged by a professional company. No matter the merchandise, household goods, personal belongings or vehicles. Otherwise, the shipment is limited to “WA coverage”.
Cargo Insurance Exclusions
The poor packaging of cargo is not reimbursed by most insurance companies. It should also be noted that this does not always cover the rejection of goods by customs.
Cargo assurance Policies include:
- Abandoned cargo
- Other party failing to pay Damages due to the product Shipping delays
- Employee dishonesty
- Break in the port cities 15 days after the cargo was unloaded.
- Example: rice may take a little moisture during transit. Not covered by standard allowance.
Covered Risks under a Cargo Insurance Policy
All Risks Cargo Insurance would cover the non-delivery of a package, this includes theft. Even in case of total loss of the merchandise, the entire consignment would be covered, in case of accident, explosion or combustion of the ship. Other covered cargo risks are:
- Damage caused by bad weather
- Sea water or freshwater
- Inadequate storage of shipping company
- Damage to mud and grease
- Fumigation services
4 Tips – Insurance for international freight
Insurance regularly used by companies is Cargo insurance. These companies deliver a large amount of product at a time. The risks associated with cargo by sea, land or even by air use cargo insurance. The two common products are single freight, travel, and open polic cargo.
1) Explore Discount Opportunities
You need a maximum of quotes from multiple companies to get the best possible competition. Discount prices are sometimes available for commercial freight forwarding. To have as many quotes as possible you can also have recourse to online insurance companies. By completing their quote questionnaires you will get new prices.
2) Do Not Overlook the Need for Protection
Frequency of use varies greatly in different countries, as freight transport is international. Countries thus have different rules on imports, exports and taxes of all kinds. It should be noted that traders often ingest cargo insurance, often through negligence. They do not take into account the incident that an incident may occur during transport. The initial cost falls but they risk huge financial losses. But more and more companies are becoming aware of this problem.
3) Cargo Insurance for Exporters
Cargo Insurance for Exporters is a unique assurance policy that combines benefits for both the exporter and the importer for the purchased cargo. Freight coverage is provided by the exporter. It is a service to buyers because it covers investment in products. In some cases buyers, for international freight, require exporters to pay for transport guarantee. So there’s a lot of competition for cargo insurance. According to the exporter, purchasers must arrange for insurance covering their specific needs.
4) See Beyond Carrier Liability
Many global traders consider that the responsibility comes from the carrier. This means that it is the carrier who is obliged to pay for all the damage caused to the goods carried, but care must be taken in the case of international transport. You have to have comprehensive insurance to cover any losses.
Finally, you can also visit the website of the World Trade Organization (WTO) to know more about the financial service in international trade.