Freight Forwarder's Insurance Agent How to Choose Suitable Cargo Transportation Insurance for Goods?

Insurance Brokers for International Freight Forwarding How to Choose Cargo Transportation Insurance?

With the growing prosperity of global trade, the demand for international cargo transportation is also increasing. However, goods face various risks during transportation, including damage, loss, and delays. To address these risks, cargo transportation insurance has emerged, providing protection for cargo owners. As an insurance broker for international freight forwarding, we will introduce you to how to choose suitable cargo transportation insurance in this article.

I. Understand the Types of Insurance

Cargo transportation insurance covers several types of insurance, including basic insurance, comprehensive insurance, and special insurance. Choosing the right type of insurance will help you better cope with various risks in cargo transportation.

1. Basic Insurance Basic insurance is a type of insurance that provides coverage for direct losses incurred during the transportation of goods. It does not include indirect losses or legal fees for the insured.

2. Comprehensive Insurance In addition to providing coverage for basic insurance, comprehensive insurance also includes protection for indirect losses, such as profit losses and freight charges.

3. Special Insurance Special insurance is designed for specific goods and modes of transport, such as electronic product insurance and medical equipment insurance.

II. Consider the Mode of Transport

Different modes of transport require different types of insurance. For example, marine transportation typically requires marine insurance, while air transport requires air cargo insurance.

1. Marine Transport For marine transport, it is recommended to purchase marine insurance, which usually includes risks such as maritime disasters, piracy, and theft.

2. Land Transport For land transport, you can choose comprehensive insurance or special insurance, such as insurance for hazardous materials or precision instruments.

3. Air Transport For air transport, it is advisable to purchase air cargo insurance, which covers losses caused by aircraft accidents, delays, and other reasons during transportation.

III. Consider the Insurance Amount

Selecting an appropriate insurance amount is a crucial part of purchasing cargo transportation insurance. Generally, the insurance amount should cover the market value of the goods as well as expected profit losses. When determining the insurance amount, you need to consider the following aspects

1. Value of Goods Determine the upper limit of the insurance amount based on the market value of the goods.

2. Expected Profit If the goods are intended for sale, consider the expected profit losses.

3. Freight Charges Freight charges are often part of the insurance amount and need to be taken into account.

IV. Consider the Insurance Company and Agent

Choosing a reputable and attentive insurance company and agent is a key step in purchasing cargo transportation insurance. When selecting an insurance company, consider the following aspects

1. Company Qualifications Ensure that the selected insurance company has legitimate business qualifications and an insurance business license.

2. Premiums and Claims Understand the premiums and claims policies of different insurance companies, choosing those with reasonable premiums and high claim efficiency.

3. Agent Services Selecting an insurance agent from an international freight forwarder can provide more professional services, including risk assessment and customized insurance solutions.

In summary, choosing suitable cargo transportation insurance requires consideration of insurance types, modes of transport, insurance amounts, as well as insurance companies and agents. As an insurance broker for international freight forwarding, we will provide you with professional insurance consulting services to help you select the most suitable cargo transportation insurance plan.