Transporting goods both domestically and internationally involves a great deal of responsibility. During the entire process, various types of transshipments, logistical activities or changes in means of transportation usually occur. These factors, as well as fortuitous events and many other incidents, pose a threat to the transported items. That is why cargo insurance for international transport is applicable. What is worth knowing about this topic?
Cargo insurance in international transport and its specifics
The insurances used in international transport concern cargoes referred to as cargo. This is one of the most difficult and complex forms of property insurance used in the broader foreign trade. This is influenced by the need to take into account a large number of contracts and documents, including purchase/sale, carriage, storage, disposal, delivery and others. In addition, such documentation must specify in detail the scope and timing of when the entity is responsible for the cargo and to what extent.
While in domestic transport the carriage procedure usually involves such entities as shipper, carrier and consignee, in the case of international transport many more entities and independent entities are involved in the whole process. These include, for example, various specialized companies, inspection offices or customs agencies. Often, transport is also carried out by several means (for example, it is sometimes by air and then by road), which also has an impact on the complexity of cargo insurance in international transport
Carrier’s liability and cargo insurance – what are the differences?
Among the most common cargo protections are carrier’s liability and cargo insurance. Carrier’s liability mainly focuses on securing the interests of the entity providing the transportation service. Thus, it allows the principal to be compensated in the event of an event due to the fault of the freight company. These include situations such as material loss of goods, loss and damage to cargo.
Cargo transport insurance, on the other hand, is a form of security dedicated to cargo owners who care about taking the best possible care of their goods, for example, against accidents. These include situations such as theft of transported items, natural disasters or loading and unloading accidents. This is a particularly recommended form of protection for long-distance shipments, which is why cargo policies are the most frequently selected cargo insurance for international transport.
The terms and scope of cargo insurance can be modified according to the needs and requirements for the cargo. The most favorable terms of such policies and forms of security in their offerings are offered by freight forwarding and logistics companies. By using both the service of carriage, delivery, storage and additional insurance, it is most often possible to obtain very favorable financial terms for this type
