Insuring goods in transit is nothing new…in fact…insurance was originally created to help ship owners protect their vessles and cargo. One of the best ways to protect your assets as they travel long distances is by choosing in-transit insurance. If you frequently ship or receive goods or merchandise, in transit insurance coverage might be for you. Keep reading to learn more about this type of shipping/cargo insurance.
FAQ
What is in transit insurance coverage?
In transit insurance coverage protects goods or other merchandise shipped by the seller. It is designed to protect sellers in the event that the goods are damaged or lost in transit. If your company relies on goods being transported – whether by land or air – by a third-party carrier, in transit insurance coverage is for you. Although a carrier’s insurance policy will include liability coverage that covers losses due to negligence, it won’t protect your shipment in a whole host of other circumstances and typically only covers good up to $2/lb.
What are the benefits of in-transit insurance?
The benefit of in-transit insurance is that you’ll be covered in the event that something goes wrong with your shipment under your own policy. If it is lost or damaged for a variety of reasons, you can file a claim and be compensated for the losses suffered without the hoops, hassle and wait times so common with trying to collect from another organization. Without in transit insurance, your shipment would only be protected if it was lost or damaged due to the carrier’s negligence (which you may have to prove) and the payout could be far less.
What does in transit insurance cover?
In-transit insurance covers goods travelling domestically within Canada or internationally. A wide range of goods can be covered by in-transit insurance, such as raw materials, manufactured goods, or packaging materials. Examples of goods include electronics and fresh food like produce, seafood, and meat and poultry. Your exact coverage will depend on the policy you choose, but it may include all-perils coverage for goods in transit or storage, ocean and air coverage, advance loss of profit coverage, and stock throughput coverage which allows coverage to be maintained while temporarily stored on route to its final destination.
What is not covered under In-Transit Insurance?
What is not covered by in transit insurance depends on the policy you choose, method, goods being shipped and where the shipping is happening. In addition, not all in-transit insurance policies include coverage for goods transported by ocean marine vessels or aircraft. Goods in transit via air or sea may require a different kind of insurance, so be sure to check this in advance of buying a policy if your company’s goods are often transported by shipping container.
Why is In-Transit Insurance Required?
In transit insurance coverage is not required or desired for all, though it is a wise decision for many senders, especially the value and/or volume of goods being shipped increases. As mentioned above, a carrier’s insurance policy will typically only cover goods that are lost or damaged due to the carrier’s negligence.
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