When you send goods, you still want the goods to be delivered quickly to the destination, but during the transportation process, there may be problems such as theft, damage or loss. To protect the interests of the shipper you should buy insurance for the order. So should buy import and export goods insurance? Find out with 1ST Shipping right in the article below.
1. Why should you buy cargo insurance?
Cargo insurance is currently a “key” to help protect the interests of the shipper when unfortunately the goods sent have some problems. The benefits of buying freight insurance can include:
– In case the goods sent at risk are valid, the carrier will be responsible for compensating the sender of that order in the form of insurance money.
– Goods that encounter problems will be assessed for damage by an experienced expert to ensure the correct compensation level with the actual status of the order. Based on that appraisal, the shipping unit will have to compensate the value corresponding to the value of the order.
– When the order has purchased cargo insurance, the shipper will be given specific and detailed advice on options to help prevent risks that are easy to encounter during transportation.
– The shipper feels more secure when delivering and receiving the goods because the shipping unit will be responsible for the safety of the order during transportation.
2. When to buy freight insurance?
Many people do not know when to buy freight insurance? In order for the goods to be transported to the delivery location safely, to prevent accidents and risks because the loss can happen at any time and no one can predict, you should buy insurance during the transportation. If you have purchased inland cargo insurance or ocean freight insurance, you will always feel more secure. However, not all orders require this type of insurance. 1ST Shipping introduces the following cases where you should buy freight insurance:
2.1 Goods that need to be transported far away should have insurance
For orders that are shipped as far away as inter-provincial or international by sea shipping, insurance is the most necessary thing. In the process of shipping goods, they often have to go through and stop at many transit post offices, so it is easy to have risks leading to damage to the goods. Therefore, to ensure that your goods are delivered safely as well as protect your interests as a consignor, you should buy insurance for orders when shipping far away.
2.2 Perishable goods should buy goods insurance
For fragile and easily damaged goods such as: electronic equipment, glass, ceramics, etc., you should buy shipping insurance for these products. Because they are perishable in the process of delivery, it can cause you to suffer a lot of losses. Therefore, to limit the risk of damage, you should buy shipping insurance to ensure the safety of your order.
2.3 Goods with high value should buy shipping insurance
Goods of high value, you should prioritize buying cargo insurance when delivering and receiving, including using road transport. Because these products have great value. If you are unlucky to have a risk when transporting the goods, it can cause a great deal of damage to you. Therefore, buying insurance for the order will help the sender receive 100% compensation of the value of the goods if the goods are damaged or stolen during transportation. If the goods sent are of low value, you do not need to buy insurance.
2.4 If you ship at peak times, you should buy insurance
At times like the beginning of the year, the end of the year or big sales occasions, people’s demand for shipping is usually higher. Therefore, the transportation process will be difficult, traffic is often congested, so the risk of goods encountering risks is very likely. Therefore, choosing to buy import and export cargo insurance is a very right thing.
3. Note when buying cargo insurance
When you decide to buy freight insurance, you need to carefully study the information and terms contained in the contract to protect your interests. 1ST Shipping shares with you the following important notes when buying freight insurance:
– Before signing the insurance contract, you need to pay attention to the insurance premium you have to pay, the insurance value / the value of the goods is how much if there is an accident during the transportation process. Usually, the higher the premium you choose to pay, the higher the percentage will be.
– The amount that the cargo insurance unit pays you if an accident occurs will usually be equal to or less than the actual value of the goods. Therefore, you need to clearly and accurately declare the value of the order so that the insurance unit can comply with the agreement. If you declare the value of the goods is too large, the insurance unit will usually not accept it, and if you declare it too small, your side will be the one to suffer.
– Before signing, you need to clearly see the items in the insurance service to know if your goods are insured or not. Shippers also need to determine the possible risks to their goods during transportation such as: epidemics, natural disasters, fires, etc. After that, you should discuss with a consultant. Insurance see with these possible risks, your goods are insured or not? If insured, how much will the coverage be?
At this point, you know why you should buy cargo insurance so you can make the right choice to ensure your goods are shipped on schedule. Hope the article of 1ST Shipping will help you to understand in depth about freight insurance!
