Firstly, it’s inexpensive – when considering the benefits the cost is far outweighed by the security and peace of mind given. There are elements of risk in all modes of transport which can expose your company to loss:
- Water ingress
- Average claim (general and particular)
Think of your car’s “fully comprehensive” cover, and you will understand what “All risks, Institute Cargo Clauses A” means – the cost of goods, packing, freight costs are protected in the event of loss.
You may feel that carriers liability insurance should cover the value of your cargo but their insurers job is primarily to protect the carrier and will defend any claim made against them and because carriers have limited liability even a successful claim may not compensate you for anything like the full extent of your loss.
When you have your own cover then the insurer’s prime concern is to protect you and your interests. Should the worst happen, the insurer will take over dealing with the carrier and undertake to settle the claim in full quickly.
For a consignment worth £10,000.00 insurance can cost in the region of £30.00 to £50.00 (around half a percent of the value of your shipment). Cost depends on the type of cargo, mode of transport and where it is going or coming from.
Speak to anyone at Eclipse Worldwide for advice and a quote on insurance.