Cargo Claims

Tom WallaceCargo, Property Insurance

Cargo Insurance

Freight Losses: Be Prepared

All of our clients have cargo and property stored somewhere. Few own their own transport vehicles so common and contract carrier use is high. Therefore, cargo insurance is not a common and cargo claims must be filed against shippers.

Certainly it is easy to let your shipping company worry about insuring your goods. However, be prepared for the cargo claim process.

Filing cargo claims

Hopefully you will find the link below helpful as it gives a great overview of shipping claims and things to watch out for.

Filing claims may have a time frames you need to know and is an important step, even if you have your own insurance. Shipping contracts may not give much detail so knowledge is power.

Law and terms for shipping can vary. Read your shipping contract and ask questions of your carriers when shipping higher values. Buying extra insurance from your shipping company could be the only way of getting full coverage on your goods.

If there is a special designation for freight claims professionals, it can’t be that easy.

Cargo Insurance

Cargo claims can be difficult but working with a shipper means you lack information. Your own insurance gives you more control over valuation and contact with the insurance company. Valuation methods include, invoice cost, actual cash value, cost of insurance and freight plus 10% and selling price.

Cargo policies can cover goods shipped by air, ocean or truck. These policies work better for companies shipping larger volumes. They can also provide coverage at named and unnamed storage locations.

For smaller volumes, shipping modes may be more limited to domestic goods shipped by truck but when coupled with named warehouse locations can afford some protection.

Either way, inquiring about your options will give better control over shipped goods. One bad accident could mean a tragic loss for your business especially if your shippers coverage is minimal.