Having contingent cargo liability can be a wise investment for any company that ships products over long distances. This kind of insurance covers the cost when products are lost, damaged, or stolen so that the company does not have to accept the loss in profit.
Types of Shipping
Because many companies ship products both domestically and internationally, various combinations of transport methods are often used. Goods may be shipped via sea, rail, truck, or air to arrive at their destination in a timely manner. Many unfortunate scenarios may affect shipping and could result in lost and damaged goods. These situations include:
- Natural Disasters
- Inappropriate handling
While many of these problems cannot be predicted or avoided, cargo liability makes it possible for a company to avoid the costly mistake of losing product.
Types of Coverage
Cargo liability may be able to cover the cost of any damaged product, even if it is temporarily in the possession of a warehouse if the right policy has been chosen. Insurance plans may include any combination of the following types of coverage.
• High-value coverage
• Storage coverage
• Warehouse to warehouse coverage
• Transit coverage
• On-deck coverage
These different types of coverage allow companies to insure products up until they arrive at their destination. Contingent cargo liability helps companies ship confidently without the fear of losing money to lost or damaged products.