Before a person ships out their goods using a freight service, they will need to attain the proper insurance. This may involve covering both the freight forwarder and the cargo itself. There are important differences between the two. Put simply, one protects the freight company, and the other protects the customer.
It is vital that the person gets insurance on every international shipment that they make. Doing so will ensure that they are compensated if the goods are lost or damaged. People are not automatically insured when they ship items via sea or air. It is up to the customer to gain proper coverage.
Marine cargo insurance (MCI) helps protect the value of goods being shipped at sea. It can also sometimes cover the journey to the port via train or lorry. Every policy is different.
Customers should read the terms carefully so that they know when responsibility for the shipment lies with them or the freight service. Air cargo insurance covers items that are being transported by aircraft. The same principles as MCI tend to apply.
An insurance provider will base its prices on a set of criteria. This includes how hazardous the freight is and its destination. The size, weight and dimensions are also taken into account. Sometimes shipping routes can be dangerous. If so, the cost of insurance will likely be higher.
Cargo insurance policies typically provide customers with full compensation to cover the loss of their items. The value of the commercial invoice and any other expenses will usually be taken into account as well.
Since the responsibility for coordinating the shipment falls on the freight forwarder, some customers might choose to let them handle cargo insurance. However, it is wiser to contact an insurance company directly for advice.