The Importance of Cargo Insurance

If you are in the business of selling goods, you are investing in your business every time you transport these goods, whether it is airfreight or ocean freight and export or import.  It is important to protect your business investment and absolutely critical to have insurance otherwise you could pay heavily for it, if it is lost or damaged.

Clarke Global has the ability to obtain automatic insurance quotes for the benefit of its clients.  Coverage is for loss and/or damage to cargo while it is in transit between the points of origin and final destination.   Without cargo insurance the types of loss or expense that you may incur if your cargo is lost or damaged includes the following:

• Financial Loss if you are an exporter and the goods were not paid for by your customers at the time of shipment; and if you are in importer that has paid for all or part of the goods prior to receiving them.

• If certain types of accidents occur to vessels, even though your goods may not have been damaged, you may have to share in the loss equally. This is called a “general average” and cargo insurance will expedite the release of your cargo under these circumstances.

• Loss of sales or legal problems as a result of not adhering to a contractual requirement for insurance in a sales contract designed to protects buyers’ interests or their bank’s interest in the event of lost or damaged goods.

• Carriers are generally or minimally by law not responsible for events such as natural disasters or accidents that occur while goods are in transit.

• Relying on buyers or sellers insurance is an option but may not be adequate and will need to be checked per shipment for coverage and whether in fact it has been purchased. Also claims that may have to be processed via insurers in a foreign country are likely to be time consuming and in a different language.

For more information on how Clarke Global can assist in protecting your investment with cargo insurance or to obtain an automatic quote, please call the Clarke Global team on 9854 3000 or email enquiry@clarkeglobal.com.au