Cargo Insurance Guidelines
The decision of whether or not to insure your freight is not always a clear-cut, simple choice. There are many factors to consider, such as the total value of the goods shipped, the shipping origin and destination, the mode of transportation, etcetera. Once the determination is made, we’ll take care of the rest.
INSURANCE OF GOODS ONLY
To ensure your shipment for the replacement of the goods shipped in case of total or partial loss or damage, request insurance for the replacement value of the goods=commercial invoice value.
INSURANCE OF GOODS + SHIPPING CHARGES
To ensure your shipment for the replacement of the goods shipped in case of total or partial loss or damage plus the cost of shipping the freight, request insurance for the CIF value of the shipment.
This type of insurance covers your shipping costs too in the case of damage or loss where the repair or replacement must be done somewhere other than the consignee’s location. Recoverable freight charges may be prorated based on the portion of the shipment damaged in the case of partial loss/damage.
If there is damage and the repair occurs at the final destination of the goods (consignee’s facility), no freight charges are refundable.
It is important to insure goods for the proper value. If a shipment is underinsured then the claim will only be paid to the percentage that the shipment was insured.
If a shipment is over insured you are not able to get coverage beyond the repair/replacement costs. The result is an overpayment of premium.