Deciding not to pay cargo insurance rates may seem like an easy way to save your businesses money. However, skimping on cargo coverage is not always the smartest move you can make. If your businesses regularly sends large or expensive shipments by road, rail, sea or air, cargo insurance is essential for making sure that you dont lose money in the event that your goods are damaged or lost. Heres how to know if you should get cargo insurance for your business.
Insurance May Cover More Than the Shipment
If the vehicle carrying the shipment is damaged, there is a chance that the companies using it for shipping can be build for the less of the vessel. Cargo insurance helps cover the loss of the vehicle, which is often much more expensive than the goods being shipped.
Insurance Protects Against Damage and Loss
A lot can happen to a shipment of goods once its out of your hands. Insurance makes sure you are compensated for the loss of all or part of the goods in the shipment.
Many Recipients Require Insurance
Recipients and suppliers alike can feel more comfortable with cargo insurance. Many customers and clients require the shipment be insured to simplify the paperwork if the shipment is damaged.
Though cargo insurance rates may seem high, they are often a small price to pay for the peace of mind that comes with knowing your shipment will reach its destination safely.