Freight Insurance
Freight insurance, also known as cargo insurance, is a type of insurance that provides coverage for loss or damage to goods while they are being transported from one place to another. It typically covers goods being transported by various modes of transportation, including ships, airplanes, trucks, and trains.
There are different types of freight insurance policies available, including:
- All-risk policy: This provides coverage for all risks of physical loss or damage to the cargo, except for those specifically excluded in the policy.
- Named perils policy: This provides coverage only for specific perils or risks that are listed in the policy, such as fire, theft, or collision.
- Valuation policy: This allows the shipper to declare the value of the goods being shipped, and the insurance coverage is based on that declared value.
Freight insurance is important for both shippers and carriers to protect against financial losses in the event of accidents, theft, or other unforeseen circumstances during transit. It helps ensure that goods are protected and that any losses incurred can be compensated for, minimizing financial risk for all parties involved in the transportation process.