Every day, millions of cargo pieces and parts are shipped across the globe. The ultimate goal of international trade is the safe and timely delivery of cargo to a foreign destination. While safety measures are in place, mistakes and unforeseen events still occur. Consider the loss or damage to any piece of high-value tech equipment - this can begin to add up, resulting in devastating financial losses to your business.
How to Choose the Insurance Cover You Need
But this isn’t the half of it. Understanding who is covered, the extent of insurance coverage, and who is liable is where things can get sticky. Not to mention an administrative nightmare when trying to submit claims and prove negligence. In this piece, we highlight the differences between traditional cargo insurance, maritime cargo insurance, and freight forwarder insurance and how best to manage your risk when shipping internationally.
TecEx’s liability cover is completely end-to-end. From pick-up to final delivery, your goods are covered.
Risk Management for Global Trade
In 2022, the containership Dyros fell victim to extremely rough seas during a storm in the Northern Pacific. Not only was there property damage, but around 90 containers were lost to the sea – some of which contained dangerous cargo like lithium-ion batteries.
Within the system of trade, managing your risk is key to ensuring a reliable supply chain. This is where insurance comes into play. Insurance is a means of protecting your business from financial loss.
Don’t just settle.
With TecEx’s liability cover you are guaranteed piece of mind from pick up to final delivery.
Major events impacting supply chains, like heavy weather or global disruptions, are not everyday occurrences. But, as soon as many hands are involved in the movement of goods – mistakes can happen. This can be something like a delivery person dropping your package or a consignment shifting awkwardly within a container, denting the equipment. While this does sound trivial, when it comes down to the expense of the equipment in question – tech gear is generally high-value. Ensuring you have managed your risk appropriately means that your business is less likely to be impacted by these often unforeseeable disruptions, such as physical loss or damage.
The most common risks associated with international travel include:
Often, clients feel that since they have outsourced their shipping to freight forwarders and couriers, their cargo will be safe, and should damages occur, the freight forwarders will be liable. However, this is a large difference between cargo insurance and freight forwarder insurance. This all boils down to the protection of different policyholders.
Before we get into the nuances of cargo insurance, let’s discuss cargo. Cargo is anything from aerospace parts to materials, food to technology. The owners of these goods are generally the manufacturers (e.g., OEMs), sellers (e.g., distributors or VARs), or even the eventual owners (end-users) of the goods.
What is Cargo Insurance?
Cargo insurance protects the value of the cargo being shipped from a list of certain situations. This can cover any mode of transport – from an airplane, ship, truck, or train. Cargo insurance covers various scenarios, from damage to the goods being shipped to loss of the cargo.
Cargo insurance protects the owner (sender) of the cargo. Often, these goods are covered for their commercial value.
Unfortunately, a long list of terms and conditions often limits the liability within standard cargo insurance policies. The level of cover generally depends on factors like the value and nature of goods, the origin of transport, the destination country, and the selected mode of transport. TecEx’s liability cover is fully comprehensive with no hidden T&Cs. From pick up to final delivery, your high-value tech goods will be covered for any damage or loss.
Still unsure of the extent of cover?
What is Marine Cargo Insurance?
Did you know maritime shipping accounts for over 80% of international trade.
This form of cargo insurance covers cargo transported on the sea. It is a supplementary coverage but also is full of terms and conditions limiting the extent of insurance cover.
What is Freight Forwarder Insurance?
It is important to note that this is an alternative form of cover offered by logistics providers.
Before we get into the nitty-gritty, it’s essential to highlight the differences between the two forms of transportation methods. There is a difference between the extent of cover provided by a freight forwarder versus a courier. The differences are due to the nature of the logistics company.
- A courier who physically transports goods from A-B is liable under different conventions for limited/partial exposure.
- While freight forwarders, as an intermediary arranging transport, are only partially liable for any damage or loss.
Freight forwarder insurance protects the freight forwarder’s liability from situations that lead to the damage or loss of cargo. In essence, this insurance protects the freight forwarder company. Furthermore, in the event of a claim, the value is generally based on the weight of the cargo.
Shipper insurance lapses when the goods are delivered in country – all in line with the air waybill. Your goods are not covered for the entire journey to the destination point.
Hang On, Isn’t My Carrier Liable For Loss of My Cargo?
Understandably, you may assume your freight forwarder or carrier will be liable for any damage occurring to your shipments. Unfortunately, this is not the case.
Furthermore, these logistics providers are only liable for any damage or loss that occurs through demonstrable mistakes or negligence. The key word here is demonstrable. The onus is on you, the sender, to prove this. And even then, the compensation will be limited.
The alternative would be to either do this yourself, rely on partial/limited cover from a carrier, or risk it all.
So, what are you waiting for?
TecEx’s Door-to-Door Insurance Cover Solution
Understanding the nuances of insurance can help you better empower yourself to make the right decision on what policy to take out. As you can see, everyone else has hidden terms and conditions when it comes to the extent of their insurance policy. TecEx does not.
We trust our partnerships and procedures to ensure our clients experience risk-free shipping. We protect your cargo from pick-up all the way through to final delivery. Be it intra-regional movement or global shipments crossing miles – it is covered.
Experience Risk-Free
Shipping Today
Fill in the form to get in touch, and our expert team will contact you with a bespoke customs compliance solution to suit your needs.
Experience risk-free shipping today.
Fill in the form to get in touch, and our expert team will contact you with a bespoke customs compliance solution to suit your needs.