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.
Basics of Cargo Insurance, Risk and Liability:
Scarbrough, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexico, and Canada Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse Fulfillment services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings. Scarbrough is widely known for its trade experts, free training, personalized customer service, customized solutions, and data analytics tools. Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.” Moreover, our team of experts is available at your disposal. We offer free 20 minute consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade. Contact us now.