How to insure cargo for transportation

In the process of transportation, the cargo is exposed to various risks - it can be stolen, the vehicle can get into an accident, the goods may get wet due to rain. To receive financial resources for lost or damaged cargo, purchase an insurance policy.

Instruction manual

1

Select an insurance company. Evaluate its reliability, financial stability. Pay attention to the experience in the market of cargo insurance. An insurance event can occur at any point along the entire length of the route, and the selected company must begin to act immediately - to ensure the arrival of the surveyor, to accept documents from another country for consideration.

2

Find out the insurance rate. To do this, call the insurance company or fill out the calculation form on the website. The tariff depends on the type of cargo (insuring fragile and liquid goods more expensive), route, vehicle, packaging, cost of goods transported. Multiply the tariff voiced by a company specialist (from 0.05 to 0.7%) by the cost of the cargo, you will receive the amount of the insurance premium payable.

3

Carefully read the Cargo Insurance Rules. They spell out the procedure for making payments upon the occurrence of an insured event, the risks to be insured, and standard exclusions from coverage. Pay attention to the concept of deductible, this is the amount of damage that the insurer does not indemnify. If you prefer to conclude a contract without a deductible, the insurance rate will be higher. In general, insurance companies offer a policy under the terms “with responsibility for all risks”, it covers as much as possible all possible events. Tell the insurer if you want to include in the insurance the risks associated with loading and unloading goods, storage in a warehouse.

4

Fill out an application for cargo insurance. The form can be downloaded on the website of the insurance company, ask the employee to send it by fax or e-mail. The information requested in the application relates to the cargo, its transportation method, cost, insurance conditions. At the request of the insurer, provide copies of documents confirming the value of the goods, invoices. Based on the completed application, the insurer writes out a policy and issues an invoice.

5

Pay the bill. The insurer will provide you 2 copies of the policy, sign them, put the seal of the organization. Keep one copy for yourself, transfer the second to the insurer.