What is Freight Insurance?

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 the financial liability from your shoulders. 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, and 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 them about the loss or damage including the details of your shipment. This will help in the smooth initiation of the claim and the freight insurance agent will be able to take you through the process. You can understand what will be compensated and what should be the line of action.

Things to Consider When Buying Freight Insurance Policy

It is required that all fragile items such as ceramic, glass, pottery, marble, tiles, granite, and other breakable items are professionally packed. The insurance company would seek evidence from you in the form of a professional packing services receipt, pre-shipment photos, and 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 them to be the same but they are 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.

What is the Difference between Freight Insurance and Freight Liability?

There is limited liability coverage in every shipment. 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. To get 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 that it was the fault of the carrier. Freight insurance assures seamless procedure and timely refunds 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 buy freight insurance or cargo 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 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.