In a typical year, many shipments valued at billions of dollars make their way through different shipping companies. A substantial percentage of these shipments are damaged, lost, or stolen during transit.
Typically, most couriers have insurance for shipments that are valued under $100. However, if you are shipping cargo that is worth over $100, it is wise to purchase additional insurance to cover your goods from possible losses.
Here are reasons why it is important for you to protect your shipments with the right insurance cover.
- Your cargo faces multiple risk factors
Moving cargo across the high seas is not an easy task. Your shipment experiences many risk factors from the day of loading until it arrives safely in your hands. It is faced with a possible loss from ship wreckage, civil wars, plane or rail crashes, and many other accidents.
When your shipment has to go through multiple modes of transport, then you increase its risk factors. It is wise to cover your shipment from such specific factors so that you can be reimbursed in case of any misfortune.
- Your cargo passes through some malicious hands
Before your shipment reaches its destination, it passes through many hands. You have the sellers, the loaders, handlers at the warehouses, inspectors, clerks at the weighing docks, and many other handlers.
Some of these people may have malicious intentions. You find thieves, fraudsters, careless and malicious people that may handle your shipment in the wrong manner leading to losses on your shipment.
- Unexpected mishaps
Sometimes your cargo can be headed in the right direction with the right people in its path, only to be met by unforeseen mishaps. These include mechanical failure of the shipping vessel, strikes, kidnapping, terror attacks and many other mishaps.
If a ship encounters difficult high sea conditions, some of your cargo may be thrown overboard. Such cases can happen to any shipment regardless of the correct measures that you have taken to guard your shipment. Having insurance against such occurrences is the responsible thing to do.
- When you have high-risk cargo
Some shipments attract higher risks than others do during the shipment process. Such shipments include organic cargo, pharmaceuticals, expensive cargo, urgent cargo, as well as ammunition shipments.
If you know that your cargo is at a risk of incurring a loss, take the right measures to protect it from loss. Make sure that any high-risk cargo has the right paperwork.
Failure to produce stamps, licenses, invoices, permits and bill of lading can cause delays and quarantine leading to losses. Insure your high-risk cargo well to protect it from major losses in case of delays, theft or cargo destruction.
- For your own peace of mind
It is not easy when you have major losses from large shipments. Even if you have had successful shipments in the past, it is wise to insure goods in transit since you do not have the certainty of a safe delivery.
Sometimes you may rely on the courier service provider to insure your goods and you end up with serious losses when they do not come through for you. When you are responsible for your own shipment insurance, you are rest assured that if anything happens to it, you follow the proper channels to recover from the loss.
