Cargo Insurance
What is Cargo Insurance?
Cargo insurance, freight insurance, rider insurance, shipping insurance and marine insurance are types of insurance policies you can purchase to protect against loss of or damage to your goods while they are being transported from origin to destination via truck, ocean vessel, rail or commercial aircraft. These policies are meant to indemnify you if there is any loss or damage to your cargo.
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What Coverage is Available?
Covers the goods against damage (partial or total) from physical and external cause including theft, and catastrophe. This is the highest coverage on the policy and will protect the goods while in transit for any physical external cause damage. Total Loss – As the name suggests, this policy covers against total loss/catastrophe of entire shipment. This policy does not cover the goods against partial loss.
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How Much Cargo Insurance do I Need to Buy?The standard practice is to cover the invoice cost of the cargo being shipped, plus freight costs, plus a percentage to cover any additional expenses associated with the shipping cost (normally 10% to 20% is adequate).
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