6 Crucial Cargo Insurance Pointers

Risk Assessment:

Accurately evaluate the risks associated with cargo during transit, including potential hazards, the value of goods, and the route's security.

1. Identify the Risks
2. Analyze Exposure
3. Evaluate Carriers and Intermediaries
4. Quantify the Potential Impact
5. Document the Findings


Coverage Clarity:

Understand the extent of coverage, including the types of risks, goods covered, and geographical limits.

1. General Average
2. Particular Average
3. All-Risk Coverage
4. Named Perils
5. War and Strikes Risks

Appropriate Valuation:

Ensure the cargo is appropriately valued to avoid underinsurance or overinsurance.

Understanding Cargo Valuation
1. Invoice Value
2. Shipping Costs
3. Profit Margin

Claims Procedure:
Familiarize yourself with the claims process, including notification periods, documentation requirements, and settlement procedures.


Exclusions Awareness: Be aware of policy exclusions to understand what is not covered, such as certain damages or losses.