Transportation Issues and Contingent Cargo Insurance

Transportation Issues and Contingent Cargo Insurance

Regardless of whether you’re in charge of the safe travel of products by truck, rail, air or sea, contingent cargo insurance protects you in the event that your customer experiences a loss through a variety of potential exposures. Your clients come to you because they trust that you’ll have their best interests in mind when it comes to providing your services. Therefore, they expect to be protected in the event of any type of mishap. You demonstrate that you appreciate their trust by carrying cargo insurance specifically designed to provide reliable, comprehensive coverage to the logistics industry.

Manufacturers know that cargo insurance is vital when it comes to moving their valuable products and machinery from one destination to another. But without sufficient coverage, you could be leaving them with lost or damaged goods and little or no compensation. The key to solving many of the common problems that accompany transporting cargo and precious freight is to know what those problems are and how to avoid them.

Common issues with the transportation of goods

Whether you arrange for the transportation of goods across the US or around the globe, there is always a possibility, no matter how slight, that the product will not make it to its destination or may end up being damaged in transit. Thefts and other causes of loss, including accidents and sinking ships can wreak havoc to your bottom line.

In order to protect your profit from these losses, a customized cargo insurance program is essential. For anyone that owns, manages or operates any of the businesses in the segments below, before embarking on any journey, research commercial cargo insurance that deals with the needs and concerns of:

  • Transportation brokers
  • Freight forwarders
  • Importers and exporters, and
  • Logistics providers

Contingent cargo insurance has two objectives: it protects your assets and your business reputation, and it enhances and protects your relationship with customers. Also, if you’re working with a broker, it’s important to note that, even though the broker may hold a contingency cargo liability policy, he or she doesn’t have an insurable interest in your cargo and therefore cannot be issued an actual insurance policy under most state laws. You should speak to a reputable agent who can help you to determine your particular needs.