What is Freight Insurance?

In addition to the basic carrier policy, a Freight insurance policy will provide additional protection to your freight. It offers protection against potential losses caused to the shipment during the transit. There are different types of freight insurance policies including cargo insurance, marine insurance, shipping insurance, transport insurance, and transit insurance. All these policies cover merchandise and goods against loss or damage during transit from one location to another.

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Basic carrier policies compensate only the blanket amounts and do not cover the freight’s value. A freight insurance policy will recompense the full value of your shipment and take off the financial liability from your shoulder. Basically, it will offer you the peace of mind. The claims are also easily settled between the insurer and the insured.

To be eligible to file a claim, the loss or damage should be caused due to the fault of the carrier. It also covers damages caused due to weather-related issues, inadequate packaging, loading errors; the carrier is not at fault or is not responsible for the damage. Also, the damage should be mentioned on the delivery receipt if it took place because of the carrier.

Moreover, you should speak to your freight agent and immediately inform about the loss or damage including the details of your shipment. This will help in smooth initiation of the claim and the freight insurance agent will be able to take you through the process. You can understand what all will be compensated and what should be the line-of-action.

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Things to Consider When Buying Freight Insurance Policy

It is required that all the fragile items such as ceramic, glass, pottery, marble, tiles, granite, and other breakables items are professionally packed. The insurance company would seek evidence from you in the form of professional packing services receipt, pre-shipment photos, original manufacturer packaging before releasing the claim amount.

It may not be easy to trust a company with your shipment. But you can enjoy your peace of mind by getting additional freight insurance for your next consignment. Freight insurance will help in easing your stress and do all the paperwork for you.

Freight insurance helps you maintain calm and be confident about delivery because with freight insurance you know that your shipment is protected. Movers often confuse between freight insurance and freight liability insurance and consider it to be same but they are actually different.

Make sure that you declare the correct value of the shipment. At the time of claim if the amount declared varies from the true value, then it may reduce the claim settlement amount on a pro-rata basis.

You May Also like to Read: Different Types of Marine Insurance Plans

What is the Difference between Freight Insurance and Freight Liability?

There is limited liability cover in every shipment. And limited explains the major difference between freight liability and freight insurance. The sum insured amount is based on the goods type and defined by the carrier’s tariffs. Usually, it does not cover the full shipment’s value, if it’s too high. Movers can refund the money if the shipment is damaged because of their fault. In order to get the timely compensation and to get the maximum compensation for the carrier’s coverage liability, it is required to pack the goods properly and make sure that they were not damaged at the time of pick-up. Other events like disasters and weather conditions do not imply the carrier is completely accountable for your freight.

With a freight insurance policy, safety is assured despite the circumstances and no matter what happens to your cargo. You don’t need to fret about getting your claim approved or a refund. Moreover, you don’t need to prove if it was the fault of the carrier. Freight insurance assures seamless procedure and timely refund as compared to a freight liability cover.

When Should You Buy Freight Insurance?

While partnering with a carrier and booking a shipment, you need to check the maximum liability coverage that is provided for your article of trade. If the freight’s value surpasses the stated amount, then you should definitely buy freight insurance. You can easily search Freight Insurance India and select a suitable plan for yourself. Also, freight insurance is required when:

  • If your shipment includes fragile goods
  • If the cost of the shipment is too high
  • When you don’t have much time to wait for claim processing in the event of freight loss or damage

Things to Consider When Buying Freight Insurance

  • Make sure that all the goods are properly packaged to avoid any damage. Proper packaging is required for fragile items and some items may require additional protection or layering while packing. So, make sure that all the items are safely packed for transportation.
  • Giving detailed and accurate information about your consignment is essential. It will save both your time and money in case the cargo is damaged.
  • It is a good idea to take pictures of your cargo before the transit. Images work as an authenticated proof when the insurer examines for freight damage and loss.

So, you must have realized how important it is to buy freight insurance. Undoubtedly, it is a smart option for movers who want to play it safe. You can also check with your carriage provider for different options in order to insure your freight/cargo.

Written By: PolicyBazaar - Updated: 28 December 2022