Cargo insurance is one of the oldest types of insurance. One of the first insurance policies for cargo transportation was issued as far back as 1347. Already at that time, merchants and traders understood that losses in the event of damage or total loss of cargo could reach to a considerable amount, in tens or even hundreds of times higher than the cost of insurance.
In contrast to the medieval – the modern owners of the cargo and transport companies in many ways still hope either to “everything will work out” or to receive indemnity from the carrier.
And if the first option of saving is obviously doubtful, in the second case the risks are rather limited from the end of the carrier.
Namely – they are only those that are in the carrier’s area of responsibility, in other cases – sorry, force majeure. And in that case – see the first option – no damage will be indemnified.
But if, after all, you decided to secure your business and insure your cargo – the main question arises:
What to direct our attention to when signing a cargo insurance policy?
How many are such important things: three, five, ten..?
In this case, we can honestly say that there are a lot of them.
First, each cargo is individual and the price is affected by the nature of the cargo, its packaging, the route, the type of transport it is transported on, the value of the cargo, etc. All this must be taken into account when forming the optimal insurance product for a particular business. Also whether the intermediate storage of goods in the warehouse is included, coverage during unloading / loading (namely, this stage is one of the most risky), necessity of a specific temperature regime (if such options are required).
Many business owners simply do not know that it is possible to insure, and what is not. The Insurers from their end desire to minimize their scope of risks, and, accordingly, their responsibility.
Secondly, if we are talking about regular transportation and large turnover – it is necessary to choose an effective form for submitting information about transportation to the Insurer, as well as a form of reporting and payment. In this case, so as to minimize the time spent by your own employees on this business process. After all, it can be the certificates issued for each specific dispatch or quarterly reporting declaration – if the volumes of goods are very large.
Therefore, the question “How to choose the right one?” is better to be rephrased into another one – “Who can help me in this choice?” if you delegate the strategically important processes to the company that is an expert in its business, you can concentrate on your own main tasks and at the same time you will get the qualified service.
As the Insurance broker, in addition to assistance in all the above issues, we provide our clients with full support not only at the moment of policy conclusion, administration but also in the claims handling and obtaining the indemnity against loss and/or damage occurred right up to its judicial settlement.
Our company is a large wholesale buyer who annually purchases premiums for tens of millions of UAH and place the risks for billions of UAH, therefore the services of Consoris are paid in the form of a discount from the insurance companies. You pay only the insurance premiums to the Insurers, and our services are paid by them. For more details about this, see the section “Insurance consulting“.