How to Know When You Need Cargo Insurance

When you ship your cargo overseas, anything can happen. Will it arrive at its destination in the same great condition it was in when it left the port? If it is handled with care and the weather cooperates, it probably will. If it is handled carelessly, or encounters an accident or natural disaster, it might not. There is no way to know for sure. That is why it is smart to protect your product by purchasing cargo insurance.


Cargo insurance will cover your goods, no matter how they are shipped. It does not matter if the product moves by sea, truck, air, or rail. It can also cover your goods in a warehouse or over the length of your entire distribution supply chain. If you are seeking to lessen your risk of financial loss, it is critical to carry the proper insurance to cover every step of your distribution process.


Before you purchase your cargo insurance, be sure that the company you choose is experienced and specializes in the unique challenges that arise when attempting to protect products while they are in in transit. State law does not regulate this type of insurance, so it is up to you to be sure you are getting the coverage you need at a fair price.


If you have particular needs, such as international cargo coverage, high value cargo, stock throughput, or project cargo, be sure to articulate those things to your prospective insurance agent. In addition, be sure to ask your agent for their coverage suggestions. Sometimes you don’t know what you don’t know, so speak up and save yourself a lot of future heartache.