Cargo insurance is a type of insurance that protects businesses and individuals from financial losses incurred due to damage or loss of goods in transit. It is an essential tool for any business that ships commodities, as it can help to mitigate the risks associated with transportation.
There are a variety of cargo insurance solutions available, depending on the scope of business activity and geographic limits of operation.
Carrier Cargo Liability
This provides coverage for the liability of carriers for loss of or damage to goods that they transport on behalf of others. It also extends to cover liability for delay, loss of market or consequential loss caused by the loss or damage to goods being transported. The policy extends to cover legal costs, costs for the removal of debris, and the carrier’s subcontractors. This policy is suitable for entities that transport goods for others, such as trucking companies, shipping companies and airlines.
Goods in Transit
This policy covers loss or damage to goods during transit, mainly within Zimbabwe, as well as during loading, unloading, trans-shipment, and any required interim storage. The goods are covered on an all-risks basis or based on selected perils.
This policy is suitable for local businesses involved in the transportation of goods, or for companies that have a number of outlets across the country where goods are distributed.
Open Marine Transit
This policy provides coverage for goods mainly where they cross borders, either coming from or going to other countries, including by air and sea. The goods are covered on an all-risks basis, with various options for the scope of cover available. This policy is suitable for businesses involved in
the transportation of goods regionally and internationally.
Why is Cargo Insurance important?
Financial protection: Freight consignment insurance can help to protect businesses from financial losses incurred due to damage or loss of goods in transit. This can be especially important for small businesses, as a large loss could have a devastating impact on their bottom line.
Peace of mind: Knowing that goods are insured can help to reduce stress and anxiety.
Compliance: In some cases, insurance is required by law or by the terms of a contract. For example, many shipping companies require shippers to have insurance before they will transport goods.
These companies offer a variety of freight and cargo insurance policies to meet the needs
of different businesses and individuals. They can provide coverage for a wide range of risks, including damage, loss, theft, and consequential loss.
Also, note that it is important to compare policies from multiple companies before choosing a policy. If you are unsure which cargo insurance solution is right for you, it is advisable to consult with an insurance broker. They can help you to assess your needs and find the best possible coverage for your business.
How to choose the right cargo insurance policy
The type of goods: Some types of goods, such as solar panels and petroleum products, are more fragile and valuable than others. It is important to choose a policy that provides adequate coverage for the type of goods you are shipping.
Value of the goods: The value of your goods will determine the cost of your insurance policy. It is important to accurately estimate the value of your goods in order to get the best possible premium on your insurance.
The risks involved in shipping the goods: The risks involved in shipping your goods will vary depending on the mode of transportation, the distance travelled, and the destination country. It is important to choose a policy that covers the risks that are most relevant to your shipment.
There are many insurance companies that insure freight and cargo such as CBZ Insurance, Champions Insurance and FBC Insurance, Old Mutual Insurance and Minerva as well as Zimnat Insurance.
Text by Perry Kaande