One of the main concerns of the owners of merchandise is to keep their goods safe from possible damage that they may suffer during transport from one place to another or even during the loading and unloading processes. For this reason, there is merchandise insurance , a type of policy through which the insurance company assumes the material damages and losses that affect the material or objects transported either by river, land, air or sea.
What is freight transport insurance?
Although insuring merchandise through the contracting of a policy is not mandatory, you should know that it is the most recommended option in order to protect the transported goods against any risk that may exist during their transit from the place of origin to their final destination. In exchange for a premium, the contracted insurer undertakes to pay compensation for the claims that are guaranteed by the insurance coverage.
Freight transport insurance is the most complete protection to deal with material damage that your products may suffer, both nationally and internationally. It is the ideal type of insurance for owners of merchandise, carriers, transport agencies and transport intermediaries such as customs agents, traders, ship agents, etc. The final recipient of the merchandise is also a suitable profile to be protected with a policy of this type.
Why is it so important to take out freight insurance?
Freight transport in Spain is one of the main economic sectors and one of the largest sources of income for the country’s GDP (Gross Domestic Product). It is directly linked to the operation of activities such as electronic commerce, the pharmaceutical industry, the food sector or the textile industry.
For small and large companies, logistics around the transport of their goods is one of the main competitive advantages for their customers. Comply with the agreed delivery times, deliver the merchandise in optimal condition, offer an agile and simple return policy, as well as the ability to
providing a quality after-sales service are issues that will have a positive or negative impact on business growth.
What types of coverage does freight transport insurance offer?
The coverage may vary depending on the chosen insurer and the guarantees that we are willing to contract, however, in general terms, these are the most common claims included in this type of policy:
Damages resulting from an accident involving the means of transport . In case of accident of the vehicle that transports the merchandise, the policy will cover the damages suffered by the goods. If the incident occurs, for example, in a means of land transportation, situations such as overturning, bridge collapse, landslides, collision with another fixed or mobile body, sudden sinking of the road, among others, can be covered.
Merchandise theft . The insurance company will respond when a robbery occurs during the transport of the merchandise.
Damage caused by natural phenomena . Extraordinary events of nature: floods, earthquakes, volcanic eruptions, etc.
Damage from fire, lightning or explosion . Damage to goods caused by fire or explosion (except for spontaneous combustion) is covered regardless of its origin.
at the time ofdo not forget that the higher the value of the cargo, the greater the risk assumed . On the other hand, when we talk about international trade, we must take into account the most common Incoterms. In most cases, the risks of the merchandise must be borne by the buyer , while in the cases of Incoterms CIF (Cost, Insurance and Freight / Coste, Seguro y Flota) or CIP (Carriage and Insurance Paid To / Transporte and insurance paid to the agreed place of destination).