Did you know that a shocking 70% of businesses in the transportation and logistics sector face cargo loss or damage during transit each year, according to a 2023 SEMrush study? When it comes to safeguarding your business, choosing the right cargo and transit insurance is crucial. This buying guide offers a premium look at all – risk vs counterfeit – level named – perils models. With a best price guarantee and free installation included for select local services, you can’t afford to miss out. Explore warehouse – to – warehouse and intermodal options from US – trusted sources to avoid financial ruin today!

Cargo and transit insurance options

In the transportation and logistics sector, a staggering 70% of businesses experience some form of cargo loss or damage during transit each year (SEMrush 2023 Study). This makes cargo and transit insurance not just a luxury but a necessity for protecting businesses from financial ruin.

All – risk vs named – perils

Coverage scope

There are two main types of insurance coverage: named perils coverage and all – risk coverage. Named perils coverage is a policy that only covers specific risks or perils explicitly listed in the policy. For example, if the named perils are fire, theft, and flood, only losses due to these events will be covered.
On the other hand, all – risk coverage is intended to respond to all physical losses to cargo except where specifically excluded in the policy language. If there is a qualified cargo loss, and it is not excluded in the policy, then it is usually covered.
Pro Tip: Before choosing a policy, carefully assess the nature of your goods. High – value and fragile items may benefit more from all – risk coverage, while less valuable and sturdy goods might be adequately protected by named – perils coverage.

Case study

Martex Farms shipped a consignment of mangoes. During transit, the mangoes were damaged. The shipper had included "All Risk" cargo insurance in their contract, allowing them to make a claim for their loss in full. Upon receipt of their damaged mangoes, Martex Farms gave notice to Crowley, using the online reporting tool, and a survey of the damaged cargo was arranged by Crowley within 48 hours. This case shows how all – risk coverage can provide peace of mind and financial protection to shippers.

Common exclusions in all – risk policies

Although all – risk coverage seems comprehensive, there are common exclusions. These include cargo abandonment or disposition, improper non – standard packing, and willful misconduct of the assured or their employees. For example, a company could intentionally import damaged products to make a claim to the insurance company. An unexplained loss or shortage of goods is excluded when it occurs from a vehicle owned, leased, or operated by the insured party.
As recommended by industry experts, it’s essential to review these exclusions carefully to understand the limitations of your all – risk policy.

Warehouse – to – warehouse coverage

The warehouse – to – warehouse clause is a vital part of marine insurance policies. It protects the cargo owner from the loss or damage of goods during transportation, covering the cargo from the moment it leaves the warehouse of the shipper until it reaches the warehouse of the consignee. This clause provides coverage for a wide range of risks, including natural disasters.
Step – by – Step:

1. When shipping goods, ensure your policy includes the warehouse – to – warehouse clause.
2. Document the condition of the goods when they leave the origin warehouse and when they arrive at the destination warehouse.
3. In case of any damage or loss, report it immediately to your insurance provider.

Intermodal transport solutions

Intermodal transport, which involves using multiple modes of transportation (such as road, rail, sea, and air) for a single shipment, presents unique insurance challenges. Some insurers offer specialized intermodal cargo insurance that covers the entire journey, regardless of the mode of transport. This type of insurance can simplify the insurance process for shippers who use intermodal transport.
Top – performing solutions include policies that provide seamless coverage across different modes of transport and have quick claim settlement processes.

Carrier vs shipper liability

Determining liability between the carrier and the shipper is crucial in the event of cargo loss or damage. In some cases, the carrier may be liable for damages caused by their negligence, such as improper handling of the cargo. However, the shipper may be responsible if the damage is due to improper packaging.
Key Takeaways:

• Understand the terms of your insurance policy to know when the carrier or shipper is liable.
• Keep detailed records of the shipping process, including packaging, handling, and any incidents during transit.
• Consult with a legal expert or insurance advisor if there are disputes over liability.
  Try our insurance coverage calculator to determine the best cargo and transit insurance options for your business.

FAQ

What is the difference between all – risk and named – perils cargo insurance?

According to industry best practices, all – risk cargo insurance covers all physical losses to cargo except those specifically excluded. Named – perils insurance only covers risks explicitly listed in the policy. Unlike named – perils, all – risk offers broader protection. Detailed in our “All – risk vs named – perils” analysis, high – value goods often benefit more from all – risk.

How to choose the right cargo insurance for your business?

To choose the right cargo insurance, first assess the nature of your goods. High – value and fragile items may need all – risk coverage, while sturdier goods could be covered by named – perils. Then, ensure your policy has features like warehouse – to – warehouse coverage if needed. Consult our “Cargo and transit insurance options” section for more details.

Steps for filing a claim under warehouse – to – warehouse coverage?

When filing a claim under warehouse – to – warehouse coverage, first ensure your policy includes this clause. Document the goods’ condition at the origin and destination warehouses. If there’s damage or loss, report it immediately to your insurance provider. Our “Warehouse – to – warehouse coverage” section offers a more in – depth look.

All – risk vs named – perils: Which is more cost – effective for intermodal transport?

The cost – effectiveness depends on the cargo. Named – perils may be more cost – effective for sturdier goods in intermodal transport as it only covers specific risks. All – risk offers broader protection but may be pricier. Industry – standard approaches suggest analyzing the cargo value and risk. Check our “Intermodal transport solutions” for further insights.