Frequently Asked Questions - CargoInsurance.com
Frequently Asked Questions
Who is CargoInsurance.com and how can they help my company save money?
CargoInsurance.com is a trusted website focused exclusively on helping cargo shippers find the best possible coverage and rates for all types of shipping. We make it easy for you and the insurance carriers to connect and determine the best insurance coverage for your needs. Once you fill out the lead form on our site, we will pass your information to relevant insurance professionals who will then contact you. Whether you are shipping goods for the first time or are a frequent shipper, you need to make sure your assets are protected in the event something happens to your cargo.
What is Cargo Insurance?
Cargo Insurance is a shippers insurance policy covering one or multiple cargo shipments by air, rail, land or sea. Exclusions for this coverage are nuclear disaster, wear and tear, war, mold, losses because the shipment is delayed and if there is no longer a market for the cargo being insured.
Is there a cost to fill out a lead form on the CargoInsurance.com site?
Filling out a lead form on our site is absolutely free! Our goal is to simply connect you with insurance agents and carriers that can your purchase cargo insurance.
Can I purchase cargo insurance for goods shipped anywhere in the world?
Yes, cargo insurance can be purchased to protect your cargo. This applies to both domestic and international cargo shipments.
What types of items can I insure?
Typically, items such as cars, jewelry, electronics, computers, fragile goods, food and plants are all acceptable things to insure. There are other items as well so you need to speak with your carrier about the specifics of what you want to insure.
Is filling out a lead form on your site safe and secure?
The safety and confidentiality of your data is critically important to us. We take all precautions to ensure the data you submit on our site is protected.
What do you mean by the term Transit insurance?
Transit Insurance provides coverage for the goods while it is being transported from one location to
If the freight carrier itself is offering insurance, is there any need for separate insurance?
Your cargo insurance requirement may be different from the coverage from the policy offered by your transporters. Your own separate insurance will be customized to serve your purpose best;
ensuring sufficient limits of liabilities and providing consolidated claims handling.
How is inland transit different from ocean cargo coverage?
The domestic transit of goods through land or by air is covered by inland transit insurance. On the other hand, freight that is being transported via international ocean or air routes (including the land connecting conveyance) are covered by the ocean cargo insurance on warehouse to warehouse
basis. However, freight transported in a domestic vessel also come under this policy.
What does the term warehouse to warehouse imply?
It is a term given to the coverage offered for the shipment insurance. This coverage implies protection from the beginning of the transit, warehouse of the shipper, until the cargo reaches its destination, customer’s warehouse. The origin and destination locations are included, even if they are far away from the ports where the loading or unloading is done.
What does an open marine policy denotes?
This type of coverage is indispensable for those who require to move their freights on a regular basis. This policy offers coverage to all the freights transited within its scope. The premiums can be paid monthly, quarterly or annually. The client do not require to report each freight being transited to the provider for coverage but need to declare the shipment in a bulk for a specific time and date. For this policy, the client needs to send the insurance provider all required information about the business, the details about the shipments, limits of cargo needed to be transited and the specific destinations. Any change in the limit of the cargo transported or its limits or destination must be reported in advanced to the insurance company.
How is Certificate of Insurance different from an Accord form insurance certificate?
The certificate of insurance together with other shipment documents is required to collect claim settlements. It is required by the banks for credit transactions. Meanwhile, the Accord Form is just a proof of the coverage.
Why is War Risk Insurance required?
To safeguard shipments from risk factors such as war, riots,
strikes, civil commotions, etc. It is recommended to buy a War Risk Insurance with an extra premium as most marine cargo insurance policies do not cover the goods against these perils. These War Risk factors and the rates of the premiums are determined by the American Market War/SR&CC Schedule or the London Market War Risks Rating Committee based upon the social and political environment of these countries. These said
committees are responsible for updating the war rates whenever needed.
What do you mean by a General Average?
Expenditure incurred to protect the ship and cargo or a loss incurred by a voluntary forfeit of
any part of the vessel, such as in the case of JETTISON, or willingly dumping material from a ship in order to protect other cargo/ property from damage. When a general average is declared by the ship owner, the loss must be shared by all cargo interests on the basis of pro-rata. The marine cargo
insurance covers such losses.
What does a FPA (Free of Particular Average) implies?
FPA covers your cargo against the complete losses incurred by marine perils. It also covers partial losses in certain cases except general average losses. This is the most restraint type of cargo insurance policy available in the market. The FPA coverage is referred as C Clauses or Institute Cargo
What do mean by a with average policy or the B Clauses?
This policy offers a more extensive coverage than the FPA covering the losses incurred by the sea
perils, even the partial losses if they reach at least 3% of the insured value.
What does an all risks policy implies?
This policy provides coverage against all transportation perils. However, it does not covers the loss, delay or damages incurred by war, strike, civil commotions, riots, loss of market or the integral
deficiency of the freight unless mentioned specifically.
What does a bill of landing mean?
The bill of landing has a threefold role. It acts as an agreement between the vessel owner and the shipper delineating the accountability of the carrier, a receipt by the vessel owner for the cargo and
as a detail of title to them.
What does Incoterms mean?
It is a document defining the liability of the buyers and sellers which is recognized by all the courts and custom authorities of the major business nations. This includes definitions of trade and it is produced by the international Chamber of commerce. The Incoterm mentions specifically the responsibilities of the buyers and sellers while loading or unloading, therefore lowering the risk of
disputes and misunderstandings considerably.
What information is needed by the underwriters to put together a precise quote?
To help the underwriters provide you with a competitive rate you need to make available information such as:
- The business operation details of the Insured Information about the destinations and ports including the inland transits before loading and after
clearance, especially if the distance is long and transportation is inferior.
- Information about the factors to which the freight might be susceptible to, such leakage, breakage, wetting, sweating, theft, pilferage etc.
- Importers or exporters who wish to arrange their own insurance, need to supply
underwriters with the details about tonnage, age and ownership of the vessel, packaging methods involved ,extent of the journey, and the time of the year the journey is to begin.
What is uberias fides?
This is a joint reliance while negotiating the coverage policy. The insured need to unveil all the
aspects needed to put together an accurate coverage. Any violation by any of the parties can result in the cancellation of the contract.
What happens if a shipment is under-valued for insurance purposes?
The cost of the cargo announced for coverage must reflect its true value or the claim settlement may be prorated to a much lesser value. Then the insured might have to act as a co-insurer to provide an
optimum coverage for the shipment.
What needs to be done on the discovery of damage to a cargo?
When the damage or the loss of the shipment is discovered, follow the instructions printed on the insurance certificate and immediately report the loss to service providers and notify intentions to claim a loss. Also contact the
surveyors to visit the destination to investigate the cause and extent of the losses. Brokers will also assist in starting the process of establishing claims.
What should be the insured role while establishing a claim for a loss?
The insured should act truthfully keeping nothing concealed while making his claims. They must act
as a far-sighted uninsured.
Category: Auto Insurance