Cross-Border Logistics Insurance Purchase Guide Comprehensive Analysis of Cargo Damage Compensation Standards and Claim Process

Cross-border Logistics Insurance Purchase Guide Full Analysis of Cargo Damage Compensation Standards and Claims Process

With the continuous development of global trade, cross-border logistics has become a necessary choice for more and more enterprises. However, there are many risks in the cross-border logistics process, one of which is cargo damage risk. In order to reduce this risk, many companies are beginning to consider purchasing cross-border logistics insurance. This article will introduce the importance of cross-border logistics insurance, cargo damage compensation standards, and claims process, helping readers better understand relevant knowledge about cross-border logistics insurance.

I. The Importance of Cross-border Logistics Insurance

Cross-border logistics insurance is an insurance designed to address various risks that may arise during the cross-border logistics process. Purchasing cross-border logistics insurance can provide enterprises with certain risk protection and reduce economic losses during the cross-border logistics process. Especially during the goods transportation process, due to various uncontrollable factors, the risk of cargo damage is relatively high. Purchasing cross-border logistics insurance can provide additional protection for enterprises.

II. Cargo Damage Compensation Standards

1. Goods Value Appraisal After a cargo damage accident occurs, it is first necessary to determine the value of the goods. Typically, insurance companies will entrust professional appraisal agencies to appraise the value of the goods.

2. Compensation Amount Based on the results of the goods value appraisal and the agreements in the insurance contract, insurance companies will compensate according to a certain percentage. Generally, the compensation amount will not exceed 80% of the goods' value, and the maximum compensation amount will not exceed the insured amount.

3. Deductible Some insurance companies may set a deductible, meaning they will not compensate for losses below a certain threshold. When purchasing cross-border logistics insurance, enterprises need to understand the deductible clauses in the insurance terms.

4. Exclusions Insurance companies usually explain exclusions, i.e., certain situations where they will not assume liability for compensation. For example, due to war or terrorist attacks, insurance companies typically do not compensate for cargo damage. Enterprises need to understand and assess their own risk exposure when purchasing cross-border logistics insurance.

III. Claims Process

1. Reporting Once a cargo damage accident occurs, enterprises should promptly report it to the insurance company and provide relevant evidence and materials, including photos of the accident scene and goods value appraisal reports.

2. Review The insurance company will review the materials provided by the enterprise to confirm whether the incident falls within the scope of insurance liability and determine the compensation amount.

3. Payment of Compensation After approval, the insurance company will pay the agreed compensation amount to the enterprise.

4. Subsequent Claims During the insurance period, if the enterprise experiences another cargo damage accident, it can apply for subsequent claims from the insurance company.

In summary, cross-border logistics insurance plays an important role in reducing the risk of cargo damage during the cross-border logistics process. When purchasing cross-border logistics insurance, enterprises need to understand the cargo damage compensation standards and claims process, and choose suitable insurance products based on their actual circumstances. At the same time, enterprises should also strengthen risk control and management in the goods transportation process to reduce the probability of cargo damage risks occurring.