How Does Cargo Insurance Work?
Some businesses may opt to only use the coverage from the ocean carrier that transports their goods. The way it works is you receive $500USD per “standard” shipping package lost or damaged. Well, if one 40-foot standard container contains $100,000 worth of items inside, it could be irrelevant. They will replace that standard container for $500.
The Result? Your lost investment that was worth $100,000USD will be covered for $500USD.
TJO CARGO is your cargo risk reduction toolbox. Unlike many other companies, we have the experience and the resources to help you reduce the risk of losing your investment. We use our abundant knowledge of freight, modes of transportation, and our operating partners to give you what you need.
What is covered under cargo insurance?
Cargo insurance is risk mitigation that protects you from financial loss due to damaged or stolen cargo. Losses from covered perils covered by ICC Clause A cargo insurance will be paid for the amount of the loss you insured, up to the stated value of your freight or commodity, for events such as acts of God (natural disasters), jettison from vessel, washing overboard, transportation vehicle accidents, and if the policy includes it, acts of war, and piracy.
What are the different types of cargo insurance?
“ICC Clause A All Risks,” & “ICC Clause C, Sometimes Called FPA or Total Loss,” are different names for the main types of types of marine cargo insurance coverage. Rates for importing, exporting, terms, conditions, and deductibles are not cast in stone. The what (commodity), when, where (origin and destination) and how (air, ocean, land type of transport) all impact the insurance variables. Fit your coverage to your shipment with a quote.
What is Freight Insurance Coverage?
Freight insurance is a policy or certificate arranged by a third-party company, such as TJO Cargo, which insures the total or partial value of your cargo. It’s coverage exclusive to the party at risk and your specific freight shipments.
What are the three main areas of cargo insurance protection?
In general, the three major threats for cargo are; A (collision), B (handling), C (theft). Learn more about the ABCs of risk mitigation. International bulk in container coverage is similar to insurance for domestic and international cargo insurance. Most coverage today is offered in clause A “all risks” or clause C “total loss”.
How much cargo insurance do I need?
In trucking, ocean, and air transport, federal cargo insurance requirements can start at zero and can vary by type of carrier. Some shippers and brokers require $100,000 in cargo insurance for truckload freight, but it is not the law. When adding insurance for air, ocean or ground consider what type of cargo you will be carrying. See examples of shipping rates for different types and destinations. Get a free insurance cost quote for your specific cargo, value and destination.