Transport insurance for international trade

 

Whether you’re buying or selling goods to or from international markets, there is always a risk of delay, damage, loss or theft during transit.

 

This article will describe how to make arrangements before the problem happens. We will see the various clauses in insurance contracts, details about the strategy to take and how to contact the insurance in case of litigation.

The importance of insurance

Cargo insurance

Cargo insurance covers goods in transit by road, rail, sea or air. In its simplest form, it provides coverage against accidental damage and other risks. The “global risk” covers a range of accidents specified in contract (eg. Damage during loading or negligence).
The cost of insurance and under what circumstances you receive compensation will depend on:
– The value of goods in transit
– If the trip is domestic or international

Do not subscribe to an insurance, what could be the consequence ?

Many events can occur during shipment that could damage your goods without having purchased insurance. You can minimize the impact of these incidents on your goods being properly insured.

 

Terms and insurance functions

When you subscribe to an insurance broker or insurance directly, it is important to keep in mind some basic notions about the service.

Compensation agreement

This is the amount of the compensation agreed by you and your insurer if your goods are lost or damaged.

Duty of good faith

It means that you must provide all relevant information about your shipment. The insurer need this information to evaluate the price of insurance and coverage.
They must inform you of any exclusion clause in their policy – the circumstances in which you will not receive compensation – so always read carefully terms and conditions of the contract.

Obligation to act as uninsured

Insurance agreement does not mean you can neglect on your side the “basic” care regarding packing or loading. You must act to minimize the risk of problems. What can you do :

– Ensure that products are safely packaged
– Certify the proper functioning of tools, machinery or transportation
– Demonstrate a rational mind with drivers and other actors in the chain
– Ensure that the buyer of the goods provides information on any loss or damage property in a short time