|Policy Limit||Estimated Cost Range (per year)|
|$50,000||$400 – $700|
|$100,000||$800 – $1,400|
|$250,000||$1,100 – $1,800|
|Freight Insurance||Cargo Insurance|
|Scope of coverage||Freight insurance typically refers to the insurance coverage for the transportation services provided by carriers or freight forwarders. It focuses on protecting the carrier’s liability for damage or loss to the goods being transported during the shipping process.||Cargo insurance, on the other hand, primarily covers the goods or merchandise being shipped. It protects the owner or the sender of the goods against loss, damage, or theft during transit, irrespective of the carrier or transportation mode used.|
|Parties involved||Freight insurance involves the carrier or freight forwarder as the insured party. It protects them from liabilities and claims arising from damage or loss to the goods in their custody during the transportation process.||Cargo insurance involves the owner or sender of the goods as the insured party. It protects their financial interests by compensating them for loss, damage, or theft of the goods during transit, regardless of the carrier’s liability.|
|Responsibility for premium||In most cases, the premium for freight insurance is typically paid by the carrier or freight forwarder. It is often factored into the cost of transportation services and included in the shipping charges.||The premium for cargo insurance is usually paid by the owner or sender of the goods. It is a separate insurance policy obtained to cover the specific cargo and its value.|
|Coverage duration||Freight insurance coverage is usually limited to the duration of the transportation service provided by the carrier or freight forwarder. It starts when the goods are in the carrier’s possession and ends upon delivery or transfer of the goods to the consignee.||Cargo insurance coverage can extend beyond the transportation service itself. It may begin at the point of departure, including warehousing and storage before the goods are shipped, and continue until the goods reach their final destination.|
Frequently Asked Questions
Does cargo insurance cost vary based on the shipping route?
Yes, the shipping route can affect the cost of cargo insurance. Some routes may have higher risks associated with them, such as areas with a higher incidence of theft, natural disasters, or political instability. Insurance providers may take these factors into consideration when calculating premiums. It’s important to discuss the shipping route with the insurance provider to determine if any additional coverage or premium adjustments are necessary.
Can I adjust my cargo insurance coverage during the policy period?
In some cases, it is possible to adjust cargo insurance coverage during the policy period. However, it may depend on the terms and conditions set by the insurance provider. It’s advisable to communicate any changes in cargo value, shipping methods, or additional coverage needs to the insurer promptly to ensure continuous and appropriate protection.
What should I do if I have a claim for damaged or lost cargo?
If you have a claim for damaged or lost cargo, notify your insurance provider immediately and follow their instructions for filing a claim. Provide all necessary documentation, such as bills of lading, commercial invoices, and inspection reports, to support your claim. The insurance provider will guide you through the claims process and assess the validity of the claim based on the terms and conditions of your policy.