What would you do in the event of a disaster? The importance of cargo and transport insurance.
Don’t let logistics become a headache! Get an insurance policy and minimize the potential material losses you could suffer due to an accident or disaster.
Goods in transit are susceptible to all kinds of unforeseen problems and accidents, including everything from breakage to disappearance, which can cause financial losses, investments, and clients, and it could even result in bankruptcy.
Many people think that transportation companies are responsible for picking up and delivering goods undamaged. However, we do not always consider the many problematic situations that can arise, such as poor weather conditions, accidents, and even theft.
Because of this, in addition to selecting the ideal packaging to protect your goods during transport, it is very important to think about taking out a cargo insurance policy, which can cover you for anything from a partial loss to total loss of your goods.
There are two types of insurance you can carry to protect your freight: transport insurance and cargo insurance. The first type will help to reimburse you for material damages or loss of your goods during transport. The second type covers you for risks such as theft, spills, rusting, or contact with other cargo.
Once you have insured your goods, keep the following ideas in mind in order to keep your policy valid:
How do I activate my cargo insurance policy?
It is very important to recognize that your insurance policy is not automatically activated when an accident occurs. The first thing you should do, if there is an indication that your goods may be damaged, is immediately advise your insurance carrier by phone and in writing in order to activate the policy.
Once they have been notified, follow the instructions of your insurance company or broker, since any claims filed outside the agreed term will be rejected.
The minimum documentation you will generally need to provide is:
· Insurance policy
· Claim letter
· Commercial invoice / Replacement or Repair Invoice
· Copy of the transportation documents (AWB, BL, or consignment note)
· Letters of intent to file a claim directed to parties that may be responsible for the damage/loss; through these letters, the policy owner holds responsible any third parties that were involved in the process
· Packing list
· Photos of the damaged cargo
· Actions taken with the authorities (in the event of theft)
If the goods in question are perishable, you should also include:
· Letter indicating cold requirements
· Pre-loading survey and report
· Temperature readings
· Packing list, assessed and signed by client
In order for your policy to be activated, you must notify the insurer as soon as possible, no more than two or three days after the event. Late submission of any document requested by the insurer may delay resolution of the claim.
Although most policies cover all kinds of disasters and unforeseen events, there are some exceptions you should keep in mind:
· Willful misconduct by the policyholder
· Negligent driving by the carrier’s operator
· Normal spills or losses of weight or volume
· Insufficient or improper packaging· Packing list, assessed and signed by client
· Loss, damage, or expense caused by delays
The most important thing is for you to be able to breathe easy and know that no matter where your goods may travel, they will be secure and protected. Remember that a small investment in a policy now will minimize the risk of greater losses for your company later.
What are you waiting for? Ensure safe travels for your freight now!