Freight typically ends up in many places, handled by myriad people and machines. From freighters to warehouses, the transportation of goods can get quite complex. If you’re shipping items, you don’t want them lost, stolen or broken. Therefore, you should insure your freight. Thankfully, there’s freight insurance which covers damages during the shipping process.
Liability Insurance is Not Enough
While most shipments have liability coverage, not all have freight insurance. That said, oftentimes, the two get bundled together under one umbrella without the buyer not knowing there is a difference between the two! Liability coverage doesn’t typically cover damaged cargo, but freight insurance does.
If you were to ask for a dictionary definition of freight insurance it would read something like this: “Freight insurance is third-party coverage of a shipper’s goods or products that exists outside of liability coverage.”
The Devil is in the Details
If you’re thinking of getting freight insurance, study the policy details. You should look to see what’s covered in terms of different types of damages. Make note of mentioned materials. What about deductibles? Freight insurance can get complicated. Some of the key terms in freight insurance include “every risk,” “all risk,” “all legal liability,” “legal liability,” “broad form,” and “motor truck freight.”
You might need help figuring out what these terms mean– this “jargon” isn’t that easy to understand to someone who is not familiar with legalese. Ideally, you want freight insurance that covers what you want it to cover, such that claims can be processed if needed, without having to argue over the nitty-gritty details.
Cargo insurance professionals can be helpful to the freighting industry. They know about laws and insurance, along with the complexities of freight insurance contracts.
Are you looking for help with freight insurance? Please call TJO Cargo Insurance at 904-781-6531 or email info@tjocompany.com. TJO Cargo is Florida’s top cargo risk mitigation consulting company. TJO Cargo offers international/domestic cargo insurance and freight protection.