| At Shipping Insurance you can find out why it's very important to purchase transportation insurance for ocean cargo or air freight if you're importing or exporting goods. Marine & Air Carriers are protected by limited liability from accidents, fires, conflicts, strikes, detention and are immune from certain cargo claims. Transportation insurance covers the Shipper where transport carriers, ports and logistics providers don't. |
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Ocean cargo insurance (marine cargo
insurance) and Air freight insurance is important on
export or import shipments. Under the Carrier of Goods
by Sea Act, ocean carriers are responsible for the
seaworthiness of the vessel, properly manning the
vessel, and making the vessel safe for carriage of the
cargo. The ocean carrier is NOT RESPONSIBLE for
negligence of the master in navigating the vessel,
fires, dangers, and accidents of the sea, acts of God,
acts of war, seizures, strikes, riots, inherent defect,
insufficiency of packing, quarantine restrictions and
any other causes arising without the actual fault of the
ocean carrier. Without transportation insurance, even when carrier can be proven liable, responsibility is limited to $500 per "package" on ocean shipments and $20 per kilogram on air shipments.
Under certain INCOTERMS (commonly used in international shipping & trade) your company may be responsible for purchasing transportation insurance. For example, if you're selling your products to a buyer in Europe based on CIF terms (Cost Insurance Freight) you must pay for international transport plus shipping insurance. If you're importing merchandise from Asia based on FOB terms (Free On Board) it means that the seller is responsible for the goods until they get loaded on board at the port of origin. If anything happens to the cargo during the overseas transit - the seller won't be responsible for it. Your company already paid for the merchandise which may never arrive. It would be wise for the importer to purchase transport insurance to cover the risks of loss or damage. If you're a private party moving household goods from one country to another the question about buying shipping insurance or not shouldn't even come up. Your personal items, furniture, art, cars, motorcycles, motorhomes, boats, etc are your investments that may not be easily replaced. Having your assets protected gives you a peace of mind. |
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