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The Importance of Cargo Insurance

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Core Tip:The Importance of Cargo Insurance

If shipping cargo is a vital component to the success of your company, it is critically important to have proper cargo insurance coverage. Many businesses have made the mistake of not having enough coverage or overlooking the specifics of their cargo insurance contracts. Either of these can be disastrous to your profitability and long term existence. once your cargo is out of your hands, you are relying on the experience and expertise of the people loading your cargo, transporting it and delivering it.


The reality is that insurance exists for a reason- things go wrong and you need proper insurance coverage to protect your goods being shipped. If you are shipping by boat, water damage and cargo going overboard does happen. There are also risks associated by shipping via air, shipping via rail, or even sending your goods across country on a truck. Goods get lost, stolen and damaged. Make sure that you recognize that the cheapest cargo insurance policy is not necessarily going to be the best choice. Ask yourself, is it worth paying more for cargo insurance that fully protects me? Or am I willing to have less coverage and gamble that my valuable cargo will arrive safely? If you are in business to stay in business, you need to select excellent coverage with cost being a secondary factor.

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