The Importance of Cargo Insurance

Cargo Insurance Many things can go wrong aboard an oceangoing vessel. There could be terrible storms with gigantic waves washing over the ship’s decks, flooding cargo bays. Mechanical failures and fires could occur. And, gasp, even modern day pirates could try and come aboard and steal stuff. It can be dangerous out there on the high seas, even in 2018 when you’d think everything would be fine.

It’s no wonder, then, that importers and exporters alike want to have “peace of mind” about their cargo. Hence, they buy cargo insurance from places like TJO Cargo Insurance.

The Benefits of Cargo Insurance

Businesses are in the business of making money and they don’t want that positive cash flow interrupted or messed with, under any circumstances. Yet, we live in an imperfect world. If and when things “go wrong,” it’s reassuring to know that a business with decent cargo insurance isn’t going to “lose their shirt” and “have to go under.”

Consider that you buy products from a foreign country like England. Moreover, you want those products to wind up in perfect condition in Miami, Florida. All along that journey, all sorts of things could go wrong. What if a forklift drops the boxes in such a way that the products inside shatter, despite being packed properly? What if boxes are left outside in the rain, and the products get soaked such that they’re no longer usable or sellable? What if someone somewhere puts the products in a place where they end up getting lost or stolen?

Having excellent cargo insurance ultimately reduces your exposure to financial loss. It can also help expedite the release of your cargo following a general average. Furthermore, sales contracts often require cargo insurance as part of the contract, and if you don’t comply there could be legal problems. Also, did you know carriers aren’t responsible for many common causes of loss occurring during transit? Even if they are liable, chances are you wouldn’t get the kind of payout you’d hope for if something went wrong and you didn’t have your own extensive cargo insurance. Finally, when you choose your cargo insurance, it’s on your terms and meeting your specific needs.

TJO Cargo Insurance handles international/domestic cargo insurance and freight protection. Call 904-781-6531 for more information.