Cargo insurance: the main risks, when and for what compensation is paid, what is not covered by the policy, features, varieties
Transportation of cargo is a serious and responsible matter, involving many risks. To lose the property entrusted to the transport company, I do not want anyone, and here insurance of cargo transportation will come to the rescue.
The presence of the policy guarantees the protection of the property interest of the cargo owner in the event of a possible loss during transportation.
Cargo Insurance: Major Risks and Exceptions
The insurer who issued the policy shall indemnify the following losses:
- cost of lost cargo, delivery services, loss of expected profits,
- unforeseen expenses for measures to prevent an insured event or minimize damage,
- expenses in general average
- payment of services for further movement of cargo, if it is to be overloaded, to be temporarily stored in the warehouse and to go further after the insured event occurred.
According to the terms of cargo insurance, compensation is paid if the goods carried are:
- were partially damaged or completely lost due to a crash, accident, fire, lightning, natural disaster or other hazards;
- disappeared along with the vehicle;
- were damaged or died as a result of an accident during loading / unloading, stowage, refueling of the vehicle.
Also, compensation must be paid for damages caused as a result of measures taken to save the cargo or reduce the scale of the loss, the costs of determining the amount of damage, all contributions, losses, expenses associated with the general average.
Cargo insurance covers the following risks of the company:
- damage that is not related to the transportation process,
- presence of manufacturing defects
- shortage (assuming the integrity of their packaging)
- delay (violation of the delivery time to the agreed destination),
- price change.
Features and types
One of the features of cargo insurance is the presence of a franchise.
Today, insurers offer 3 contract options:
- Responsibility for all risks – any losses are covered, except for the separately stated exceptions.
- Responsibility for a private accident – losses incurred for specific reasons are covered.
- No liability for damage – only damages due to full or partial loss of cargo are paid.
All of the above types of contracts provide for the payment of expenses in the event of a general average and the forced expenses required for an insured event.