Cargo Transportation Insurance: What to Know?

Are you moving from Japan to China? Then you probably need to ship some items to your new address. However, in order to ensure the safety of your items, it would be smart to get cargo transportation insurance. Weather conditions are unpredictable, especially when you are considering international transport. For this reason, here is all you need to know about this type of insurance. 

What is cargo transportation insurance? 

All carriers should have a minimum amount of insurance, otherwise known as carrier liability. However, this is not enough since it offers very limited coverage. Anything out of ordinary is not included. For this reason, you should consider getting cargo transportation insurance. Your items will be protected from loss, damage, and possible theft. Anything can happen even to door to door cargo transport. That is why you should know about other types of insurance and not rely only on basic coverage. 

Types of insurance 

There are two important types of cargo transportation insurance. 

  • Land Cargo Insurance provides coverage for land transportation as the name itself suggests. However, the insurance is domestic so it only works within the limits of your country. 
  • Marine Cargo Insurance includes other means of transport, by air and in the sea. Contrary to the previous one, this provides coverage for international transportation. However, it has several policies that you have to understand in order to know fully how this insurance works. So before getting this one, do further research.
a huge cargo ship
This insurance works for international transport

The limitations of cargo insurance 

Unfortunately, every insurance, including cargo transpiration insurance has some limitations. There is no one standard of insurance that offers full protection. In addition to this, all the policies regardless of their name do not offer the complete coverage against Carmack Amendment. There are certain ways of how people can write one policy so it will not offer full protection. For example, specific cargo is not included, only some equipment and terminal are covered, some losses are not valid, and so on. For this reason, make sure to understand your insurance policies in order to know what to expect. 

Benefits of cargo transport 

 Lastly, you should know all the pros of cargo transportation insurance. Firstly, it covers shipment by air, in the sea, by road, railway, registered post parcels, and courier. In addition to this, all-risk coverage provides insurance if there are infestation and abandonment. As well as additional damages because of bad packing, customs rejection, and human mistakes are all included. Apart from this, free from particular average coverage works for international transport. It covers the following misfortunes such as bad weather, theft, fire, sinking, earthquake, and so on. 

stoem at the beach
Get insurance that covers bad weather

Should you get additional insurance 

As you can see, these are all the important aspects of cargo transportation insurance. It would be wise to get additional insurance especially if you are shipping out some valuable items. For this reason, it is not smart to rely only on basic coverage. However, take all this information and make a final decision. 


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