5 frequent questions about insurance of your belongings
Freight insurance (also known as marine insurance or logistical insurance) protects a shipper against exposure to risks. Although the carriers are conscientious and attentive, they cannot protect themselves from bad weather.
International travelers are strongly advised to protect their merchandise by carriers offering global insurance that will guarantee a partial or total loss of their investment.
1. What is freight insurance and is it mandatory?
Insurance protects shippers against loss and damage during transportation at the national or international level.
Choosing insurance from a freight forwarder is not mandatory. If you choose to insure it separately, there is minimum coverage under the Warsaw Convention: $ 20 / kg for air cargo and $ 500 for marine.
2. What cannot be insured?
Parts and precious metals cannot be insured with a standard cargo insurance policy. There are special underwriters who can insure that kind of product, but they are separate policies. Deaths occurring during transport cannot be insured.
3. How much does insurance cost and are there limits?
It all depends on the cargo, its origin, its destination and the carrier. Cargo insurers have similar parameters to civilian insurance companies.
There are limits. Maximum cargo insurance is 110% of the CIF Value (incoterm) and will cover the total value of the lost or damaged goods.
4. Where can I subscribe?
Your commercial insurance already in place can fully insure you for any damage to property shipped or can cover up to a certain amount. It is up to the sender to know the limits of what he wants to ensure. Some companies choose “gap” insurance. This is the difference between a commercial insurance policy and the maximum allowed. If you already have shipping insurance on your trade policy, there is no reason to pay it twice.
You can take out insurance with different companies specializing in this type of insurance
5. Who are the best to subscribe?
The agent and the insurance company can vary greatly, in the same way as insurance companies for cars or homes.
It is sometimes preferable to obtain coverage from a federal road transport authority and a third-party logistics company. In addition to working only with insurers A, they can offer preferential rates because of the volume they dealwith insurance companies.