Shipping Insurance

Insuring cargo during its transportation is an important part of logistics that enables an owner to avoid extra financial costs. Shipping freight deals with such risks, as container damage, storage terms violation, thefts, accidents or natural disasters. Some delays caused by military actions, strikes, technological or natural force majeure are also taken into consideration.

Shipping insurance assumes insuring a shipping container and its state equipment. CASCO is a popular insurance in Russia. It includes both short- and long-term cargo insurance during its transportation in a full or empty TEU. A container owner can also have it insured when renting or leasing to a third party. A client suggests insurance terms. The price of such a service depends on special conditions, cargo characteristics, a route and a way of shipment, as well as a volume of freight.

Specifications of cargo insurance

A company provides a guarantee to a container owner or a logistics company to pay damages in case of an insured event. Compensation fee is usually fixed in local or foreign currencies. Insuring shipping cargo is divided into several categories:

• Container insurance;
• Cargo insurance from all possible risks;
• Freight insurance in case of an accident or a crash;
• Insurance from fraud, damages during loading or other possible risks.

The process does not take much time. The legal basis gives strict regulations that are simply to interpret clearly. It is possible to insure cargo despite a type of its transportation vehicle. Compensation usually covers the whole price of transported goods, supporting costs and container restoration. In order to have the process smooth, it is recommended to address only professional companies with reliable reputation in this field of insurance.