We can place insurance that protects cargo in transit from warehouse to warehouse. Every party to the supply chain has a different limit of liability. Airlines, steamship lines, truckers, railroads, warehouses and Customs Brokers all carry different coverage. Cargo insurance, provided by a specialized company, written for the CIF (cost + insurance + freight) value of the goods, plus 10%, should make the insured whole. The insurer then subrogates against the party responsible.
In an emergency, the vessel owner may declare the “Law of General Average”, whereby all of the individual cargo owners share in the loss of cargo sacrificed to save the entire vessel. With cargo insurance, the insurance company posts a bond to release the cargo. Without cargo insurance, the importer must post a substantial cash deposit before the cargo will be released.
Insurance premiums are determined by a variety of factors, including the cargo’s origin and destination, type of packing, method of transportation, deductible, commodity and the insured’s history. Speak with us about a quotation to protect your cargo while in transit.