Many companies make their profits by producing consumer goods. These goods most often require transportation from a manufacturing center to another store or distribution center. Sometimes these items must travel from coast to coast or even overseas to international destinations. Because these goods represent an investment of company money, it is important that they are protected with cargo insurance.
Cargo insurance companies insure items in transit against physical loss or damage from external causes during the shipment process whether by land, sea or air. Many times the coverage is from the point of origin all the way to the final destination, regardless of how many times the cargo switches handlers or modes of transportation. If the product requires storage at a warehouse, some policies will cover loss or damages incurred while at the warehouse. Some specialized companies offer insurance for project or oversize cargo, which can be difficult for insure with a typical insurance agency. This can be especially beneficial if the shipment is being delivered to a high-risk destination or contains very high-value cargo.
Anything can happen to a shipment in transit. Natural disasters, theft, fire, accidents, general damage and mis-delivery or non-delivery are just a few examples of the potential hazards that could cost a company thousands to millions of dollars. Cargo insurance companies offer policies that can protect against all of these potential hazards in transit. Any company that transports its goods should have cargo insurance.