As your logistics provider, we want to ensure you receive the best possible service in all aspects of the movement of your freight. An integral component of our services is to make sure you are aware of the need to properly insure your cargo during transit and to provide you with a competitive and comprehensive insurance program. While we always handle your goods with the utmost care, there are problems inherent in the transportation process that may cause losses beyond our control. For instance, Lloyds of London recently reported that on average, one ship sinks every day. Some other reasons to insure your freight include:
General Average is incorporated into most ocean bills of lading. It is used when a voluntary sacrifice is necessary to save a vessel, cargo and crew (the voyage) from a common peril. General Average claims require all cargo owners on a vessel to contribute to the loss. Even if your cargo isn’t damaged, a contribution based on the total value of all of the ship’s cargo must still be made to get the cargo released. If cargo insurance is purchased, Cargo Insurance and the insurance company posted the General Average Bond and Guarantee to meet the cargo owner’s contribution and facilitate release of the cargo.
LIMITED CARRIER LIABILITY
Carriers only pay claims when they are legally liable, but even then, their liability is limited depending on the mode of transit. Because of regulatory changes in the industry, transportation as we know it is not the same. Carrier’s liability is changing and these new treaties will have to be upheld in the court system. Do you want to be among the first to prove liability under these new regulations?
The “Carriage of Goods by Sea Act” (COGSA) governs liability for ocean carriers and NVOCCs moving cargo to/from the United States and limits recovery to $500 per customary freight unit (CFU) when the carrier/NVOCC is negligent
The Warsaw Convention previously limited an air carrier’s liability to the lesser of cargo value or $9.07 per pound ($20 per kilogram). Adoption of Montreal Protocol 4 changed this limitation to 19 Special Drawing Rights (SDRs), or about $28 per kilogram
Some goods are simply prone to loss simply by their nature. Make sure to protect your financial interest.
In order to protect your financial interest in your goods, you should insure them all-risk. This is the broadest form of insurance coverage and is available through our company. It basically insures against all-risks of physical loss or damage from any external cause. Another way to think of all-risk insurance is that everything is covered, EXCEPT what is specifically excluded.
BENEFITS OF INSURING
Should something unforeseen happen to your cargo while in-transit, we want you to have the best protection available to help you recover after the loss. Because of our mass buying power and our strong relationship with our insurance broker, we can provide you with coverage and services not available elsewhere.
Should a loss occur, we are in the best position to help coordinate a claim. The insurance company must receive certain documents in a very timely manner in order to process a cargo insurance claim. We can facilitate that process for you so that you are able to focus on your business. Our experienced insurance broker will act immediately on your claim and handle them quickly and professionally. Minimal effort is required on your part.
Finally, we believe cargo insurance is an integral part of the transportation process. As your transportation service provider, we have negotiated special rates with our insurance carrier based on our company’s volume. Additionally, we can access special insurance markets (like Lloyds of London) when a risky, or high value, commodity is involved.