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Freight insurance

What is freight insurance?

Freight insurance is an additional insurance next to your default carrier policy. A freight insurance covers the cost of damage done to your cargo. Your standard carrier policy tends to only cover a coverage amount and they do not adjust according to the value of your freight. A lot can go wrong during the transportation of freight, so to have a good night’s rest it is wise to make sure you are covered properly.

What should I consider when buying freight insurance?

All fragile items such as ceramic, glass, pottery, marble, tiles, granite, and other breakables items have to be professionally packed. You have to be able to hand over evidence in the form of professional packing services receipt, photos of the freight before shipping or original manufacturer packaging. Otherwise the claim amount will not be released. Another advantage of getting additional freight insurance is that even though it is difficult to entrust your cargo to someone else, you can enjoy your peace of mind. This, because you know your freight is thoroughly protected and insured when something might happen.

Freight insurance and freight liability

Freight insurance and freight liability insurance are commonly mistaken and considered to be the same but they are actually different. Let’s look into the differences between the two.

The difference between freight insurance and freight liability

To put the difference as easy as it gets is as follows: There is limited liability cover in every shipment. And limited explains the major difference between freight liability and freight insurance. The sum insured amount is based on the goods type and defined by the carrier’s tariffs. Usually, it does not cover the full shipment’s value, if it’s too high.

When should you buy freight insurance?

While partnering with a carrier and booking a shipment, it is recommended to check the maximum liability coverage that is provided for your article of trade. If the freight’s value surpasses the stated amount, then you should definitely buy freight insurance

  • You should buy freight insurance when your shipment includes fragile goods
  • When the cost of the shipment is too high it is recommended to buy freight insurance. If something might happen to the shipment the insurance covers the costs and you will not be disadvantaged.
  • When you don’t have much time to wait for claim processing in the event of freight loss or damage

Our freight insurance experts are at your service

Charterama offers a full range comprehensive Charterer Liability Insurance, tailored to your requirements and exposures. Are you in need of freight insurance or advise on what insurance suits your needs the best, get in touch! We will gladly help you out.

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