All transportation specialists should secure contingent Motor Cargo Liability insurance to protect goods during transit. Damage to these goods could be the result of any number of hazards, including storms while at sea, or a fire that destroys goods in transit, they could simply be stolen, or a shipper might mishandle goods, or they could even just end up lost. In any case, contingent cargo liability brokers understand your need for insurance and want to provide smart solutions to protect you against a serious financial loss.
Any number of issues can crop up whenever the custody of goods transfers between buyers, sellers and traders. With so many different people involved in the process, proper inspections can be critical to ensure that nothing goes missing, or to report damage when it occurs. This can go a long way towards determining where the fault may lie.
Inspectors are an important part of the overall process. They should survey and sample representative product from all the different transportation routes. This includes:
- Bulk storage tanks
- Cargo ships
- Rail cars
- Shore storage and transfer facilities, and
This is vital in order to determine if the goods are being stored and facilitated properly.
All-risk cargo insurance policy can be effective for freight forwarders
All-Risk Cargo Insurance, one of the broadest forms of coverage, provides first-party protection on all approved general merchandise for loss or damage to cargo from external causes. Freight brokers are often asked by shippers, consignees, freight-forwarders and the like to guarantee payment on cargo claims. Motor truck cargo insurance, for example, does not cover freight loss or damage including Default Act of the Shipper, Act of God, or Act of Infidelity,to name a few general causes. All-risk fills those gaps.
In addition to providing coverage for any loss or damage, contingent cargo insurance also pays for the costs to minimize a loss and pays for damage inspection. Most carriers have limited liability, which may leave a shipper at a loss for a full recovery, but having the right cargo insurance helps to pay covered claims without there being a need to prove fault.
Contingent cargo liability brokers can provide insurance solutions that are the best line of defense for shippers having concerns whenever the transportation of goods takes place and there’s a chance that any loss can have serious consequences.