What is Cargo Insurance? Should I insure my cargo? How much is it?
Cargo insurance provides protection against all risks of physical loss or damage to freight from any external cause during shipping, whether by land, sea or air.
All risk insurance includes all risks of physical loss or damage unless excluded which includes:
- improper packing,
- abandonment of cargo,
- rejection by Customs,
- failure to pay or collect,
- inherent vice,
- employee dishonesty,
- barge shipments,
- goods subject to an on-deck BOL,
- losses caused by temperature or pressure,
- used goods,
- failure to provide timely notification of loss,
- loss in excess of policy limits,
- loss caused by delay or loss of use and/or market (Seasonal merchandise),
- cyber attack,
- loss due to strikes or acts of war.
Insurance is typically between 0.20 to 0.40 per $100 of freight value + commercial value x 110%, with a minimum of $25. It is very affordable and goes a long way for the small amount of money paid, so we highly recommend purchasing insurance. Scarbrough can insure your cargo and claim losses right here in house. Please note, some commodities have a higher rate based on their frailty, such as granite and marble. Also, if the value is extremely high, the rate may be higher, as well.