What is cargo insurance?
Cargo insurance is comprehensive coverage for physical
loss or damage to cargo during international and/or domestic
transit.
Why should
I buy cargo insurance?
If just one shipment a year is lost or stolen it can be devastating
to your firm. Cargo insurance can protect the financial interests
of the goods you ship. Also, carriers have a limited liability,
sometimes as low as 50 cents a pound.
What can
cargo insurance do for my company?
Cargo insurance will protect the financial integrity of your
company.
How does
cargo insurance work?
The policy is easy to understand, implement and manage. Once
underwritten, you may report your shipments monthly or annually. We
can tailor policies to your individual needs.
What types
of losses are covered?
The policy covers many loss situations including theft,
pilferage, water damage, breakage and non-delivery.
How much
will it cost?
Premiums usually are based upon the commodity shipped, the
destinations and the value of the merchandise.
For the owners of
cargo there is the possibility of loss in the course of transit,
either aboard a ship, airplane or on land between ship/airplane and
its point of origin or destination. Cargo Insurance protects the
financial interests of the shippers of that cargo while their cargo
is exposed to the risks of transit (such as theft, pilferage, and
non-delivery). Owners of the cargo can buy Cargo Insurance directly
or from intermediary companies like Freight Forwarders, Customs
Brokers or retail insurance brokers who can buy the insurance on
behalf of the shippers. Whether it's a shipper, Freight Forwarder,
Customs Broker or retail agent, the mechanism to insure this cargo
is the same. Global Solutions Insurance Services
issues an "Open Cargo Policy". That is designed for the frequent
shipper and covers all goods shipped or received by the owners of
the cargo. When the shippers have a loss under this policy they
then get reimbursed for the cost of their cargo including freight
costs, duty and related charges.
Let our proprietary
software program, "Gemlinkpro 6.0", help you automate all
administrative functions relating to cargo insurance programs. See
our Technology Section for more details about the program.
If a
Freight Forwarder or Customs Brokers damages cargo, what are their
liabilities?
Cargo Legal Liability will cover your liability for physical loss
or damage to your customer's goods while shipped under a house,
air, or surface bill of lading.
Cargo Legal
Liability Insurance - When shippers do
not buy Cargo Insurance they will often look to the Freight
Forwarder or Customs Broker to reimburse them when a loss or damage
occurs. Regulatory laws require the Freight Forwarder, Customs
Broker, shipping vessel, airlines, or trucking company to be liable
for a specific amount per pound to the shipper. Cargo Legal
Liability provides reimbursement to the Forwarder or Broker for
this amount and includes costs to defend them in court if they are
sued.
Let our policy help
you. Freight Forwarders, Custom House Brokers, N.V.O.C.C. and
Warehouseman, protect your business assets and let our
Global Solutions Insurance Services insurance
specialists offer you affordable pricing and quality
service.
"People make mistakes, no
one's perfect."
Are you protected if your
customer sues you for negligence?
What if your shipping clerk
accidentally ships your customer's cargo to Paris, Texas instead of
Paris, France?
If your customer loses his market
as a result of your oversight to get his cargo to its destination
on time, are you going to reimburse your customer for his
loss?
What happens when you have a
letter of credit, your shipping clerk releases the cargo before
receiving proper documentation and the consignee doesn't pay the
shipper?
Errors
& Omissions Insurance (E&O) - Insurance for
Customs Brokers or Freight Forwarders, NVOCC's and Warehousemen
covers consequential or financial loss suffered by shippers
as a result of an error or mistake. When you store your customer's
goods, by law and by the terms of your bill of lading, you become
responsible to reimburse your customer for losses while his goods
are in your care, custody and control. This policy is designed to
respond to the legal liability that logistics firms assume as a
result of an error or omission in fulfilling their responsibilities
to their clients.
