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When transporting goods, various unforeseen situations are possible, which can lead to partial or complete loss or damage to the cargo. Any transport company should protect itself from such cases, in connection with which, it insures liability or cargo. The owner of the transported cargo can also prevent its financial losses, insuring the goods at its full cost.

The concept of cargo insurance

Cargo insurance is the conclusion of a contract with an insurance company that in the event of an insured event, it will be obligated to pay the freight carrier or the cargo owner compensation for the damaged or lost goods. Thus, the responsible person removes risks in case of unforeseen circumstances and shifts them to the insurance company.
Insure the goods can, both the carrier and the owner of the goods. With insurance, a contract is concluded, where the conditions for financial compensation from the insurer and its amount are prescribed. Approximate list of insured events:

An accident that led to loss or damage to the goods;
Improper implementation of safety, resulting in the loss of the goods;
Unforeseen natural phenomena that led to damage to the goods;
Failure to comply with the conditions of carriage, and as a result of its damage or loss of useful properties;
Exceeded the delivery time for reasons beyond the control of the carrier, which also led to damage to the cargo.

Any insurance company is interested in the cargo owner or carrier insuring his goods from a large number of cases, because for each of such cases he will have to pay extra. However, not always such financial investments are justified, because Even with the onset of one of these insured events, the insurer may find a loophole in order not to pay compensation. Therefore, each clause of the contract must be carefully studied.

Liability insurance for cargo transportation

For the safety of the cargo during its transportation is responsible primarily not the driver, and the freight forwarder. He must monitor the movement of the cargo and the timeliness of its delivery. Nevertheless, there are risks that the goods will not be delivered on time, completely or partially lost, or damaged. In order to eliminate the liability, the freight forwarder of the carrier's company insures its responsibility for cargo transportation.

It is the availability of liability insurance for the carrier that gives him an advantage when searching for a client. After all, the cargo owner is interested in reimbursing him for material compensation in the event of unforeseen circumstances. The freight forwarder also pursues his interests, with liability insurance, all claims of the cargo owner will be satisfied exactly by the insurance company.
Another reason why a cargo carrier must insure liability is compensation for damage to the cargo insurer. Suppose the owner of the cargo insured him, and during the transportation the goods were spoiled. The insurer immediately pays compensation to the cargo owner, but at the same time he must compensate his losses. Therefore, the insurance company is looking for the culprit of the incident, which, naturally, is the freight forwarder. Due to the availability of liability insurance, the carrier transfers its responsibility to the insurance company, which covers all expenses.
Relationship between cargo insurance and liability

Cargo insurance in the broad sense of the term implies insurance of the property of the owner of the goods. Insurance takes place for each specific cargo, and for each trip. The insured of the cargo may be both the owner of the goods, and the company engaged in its transportation. The amount of insurance payments must correspond to the value of the goods.

Liability insurance is designed to protect the carrier from financial losses in the event of situations that lead to loss or damage to the goods. Unlike cargo insurance, liability insurance is not for one trip, but for a certain period. Throughout this period, you can carry out as much as you want freight, and each of them will be insured. Thus, liability insurance extends only to the carrier, protecting its interests.

A carrier can insure both cargo and liability. Often, these types of insurance are combined. After all, in case of insurance of only one liability, the insurance company can demand material compensation of the carrier after payment of insurance. If the cargo is insured, the carrier becomes an intermediary between the cargo owner and the insurer. As a result of this mediation, the cargo owner receives a full refund of his losses.

What to insure, cargo, or responsibility?

The carrier and the owner of the goods may not insure at all, or responsibility, or the cargo itself - at the legislative level this is not an obligatory procedure. However, when looking for a carrier, customers primarily pay attention to the terms of compensation, in the event of damage or loss of goods. If the carrier's company has liability insurance, then a more trusting attitude arises to it than to the carrier without it.

As for cargo insurance, this step can be taken by both the owner of the cargo and the cargo carrier. When a cargo carrier insures cargo, it shall not be liable for loss or damage to the goods, which can not always provide liability insurance. However, the compensation paid does not always cover the loss of the client. Therefore, it makes sense for the cargo owner to insure him.

Thus, liability insurance is a necessary procedure for the carrier, which allows not only to protect yourself, but also to attract potential customers. Insurance of cargo can be used, both carrier and cargo owner.

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