The aim of cargo insurance is to cover your goods against damages or losses which can occur from the beginning to the end of the transportation process just for the payment of certain insurance premium, but how much would it really cost?
The answer may not be that simple as give you a value, because there are many factors that affect the final cost of cargo insurance but in this blog we want to give you all the aspects to keep in mind to define the cost of freight insurance..
What are the factors that affect the cargo insurance cost?
There are many factors that affect the cargo insurance cost, exporters and importers need to understand that there are a lot of risks during the shipping process, and you have to be advised for a broker or insurance company who can understand your needs and offer you a insurance policy that protects your cargo and your investment.
One of the factors that affect the cargo insurance cost is the value of the goods itself, of course, you are protecting your investment, so it’s the main factor to be considered.
The origin and destination points of your shipment are also one of the factors that affect the cargo insurance cost: the more traveled distance the more risks your cargo affront and the more coverage it needs.
Speaking of shipment, the transportation method used to your shipment affects the cargo insurance cost, especially the ocean shipments, that are more expensive than air or truck shipments; due to the risks and time that the cargoes are exposed.
Another factor that affects the cargo insurance cost is the rate of theft of your goods. There are some goods that are catalogued as “high-risk for theft” items that are so valuable that many burglars want to steal, like computers or medicine; meanwhile, others that are catalogue as “low-risk for theft” even though these items can be stolen, are not so frequent.
The list of factor can continue, so give you an exact value it very difficult, insurance company and broker examine all these items and make the calculation to give you an accurate quote of your cargo insurance.
Find the best company who can ensure your cargo
You can find many options in the market, but you must find a company that gives you the correct information about exclusions and cover, so you don’t have headaches after a claim shows up.
In Cargo Care Services we have a team with more than 12 years of experience, we give full customer support, either if your shipment is domestic or international. We are backed by a worldwide network of business partners that will assist our customers immediately and face any situation to ensure the process will be done correctly and quickly. Our policies for new general cargo are “all-risk” coverage door to door and non-deductible for new merchandise.