Cargo Insurance Needed

shippers can request cargo insurance to

protect their goods from loss, damage,
or theft while in transit. Generally,
goods are insured while being stored
and while in transit, until they reach the
buyer
 Cargo Insurance
Cargo Insurance provides coverage against all risks of
physical loss or damage to freight during the shipment
from any external cause during shipping, whether by
land, sea or air. Cargo Insurance or Freight Insurance
benefits local and international trade.90% of international
cargo transportation is carried out by the sea.
Also, known as Freight Insurance, it covers transits
carried out in the water, air, road, rail, registered post
parcel, and courier. Cargo insurance is important in
international trade.
Aspects are covered under the benefits of
this insurance:-
Damages due to inappropriate packing.
Infestation.
Cargo abandonment.
Customs rejection.
Employee’s dishonesty.
Damages due to Collision.
Damages due to Heavy weather, Sinking, Derailment.
Non-delivery.
Theft.
Fire.
Types of Cargo Insurance Coverage

Different cargo insurance policies are

available for transporting cargo by land, sea,
or air. Common types of cargo insurance are;
All Risk.
Free of Particular Average (FPA).
Shipment-by-Shipment:
 All Risk

All Risk policy typically covers any physical

loss or damage from external causes, with
some exclusions listed.This policy should
cover include collision with an external
object, train derailment, truck overturning,
deliberate destruction, improper shipment
by ship owners, theft, and acts of God (e.g.
earthquake, lightning strike).
Free of Particular Average (FPA)

FPA or Free of Particular also known as

a Named Peril policy, lists exactly what
is covered by the policy. Usually, theft is
not covered by FPA policy. FPA usually
covers crash, burning, sinking, train
derailment, truck over turn in.
Shipment-by-Shipment

Shipment-by-Shipment insurance coverage

through the carrier who is shipping your
goods. However; there may be certain
exclusions, including defects in the
transportation vessel, criminal acts on the
part of the vessel’s crew, acts of God,
and acts of war.