Cargo Insurance. Why it matters

Imagine you're shipping a valuable shipment and suddenly there's a problem. The shipment is damaged, lost, or simply doesn't make it to the customer. If you don't have insurance, all of your efforts, time and money could simply burn up. Cargo insurance is not just a formality, but a real protection that can help you avoid huge losses. Let's talk about it today in LLC «FabriQuanta» blog.

Why you need to insure your cargo
1. Protection against unpredictable situations.
Cargo can be damaged for a multitude of reasons, from theft and accidents to natural disasters and driver error. Insurance guarantees compensation for losses if something goes wrong. This is especially important if the goods are expensive or fragile.
2. Business continuity guarantee.
Insurance gives you peace of mind that even if there is a loss or damage to your cargo, the business will continue to operate. You'll be able to quickly recoup losses and continue to fulfil your obligations to your customers.
3. Financial stability.
Without insurance, you will have to cover all expenses out of your own budget. This can significantly affect the financial stability of the business. Insurance allows you to avoid unexpected and large expenses.

How to choose the right cargo insurance

Type of cargo

If you're transporting expensive or fragile goods, there's no doubt that you should choose an all-risk policy. If your cargo is cheaper and less susceptible to damage, you can limit yourself to minimal protection, such as loss insurance.

Route

It's important to consider which regions you're passing through. If the route passes through areas with a high likelihood of natural disasters or political instability, insurance should be more comprehensive.

Type of transport

Different types of transport have their own characteristics and risks. For example:

Road haulage: risks include accidents, bad roads and theft.
Sea freight: here it is important to consider storms, piracy, damage during transport.
Rail and air transport: accidents and damage during loading/unloading.

What affects the cost of insurance
The cost of insurance can vary greatly depending on several factors:

Transport

Cars are usually more expensive to insure because there are more risks (accidents, bad roads, etc.). Sea freight is cheaper, but there are risks of storms or piracy. Air freight is the safest, but also costs a lot.

Type of cargo

Cargo is expensive and fragile - insurance will cost more. For example, if you are shipping crystal or electronics, the insurance price will be higher than if you are shipping building materials.

Route

If the route includes an area with political risks or natural disasters, insurance will cost more.
- Packaging
Good packaging reduces the risks of damage. And this, in turn, can reduce the cost of insurance.

Remember: cargo insurance is not just an optional extra, but a necessity for any business. Without it, you risk not only losing your goods, but also getting into a financial hole. The right insurance can help you avoid a lot of problems and keep your business afloat, no matter what happens during transport.

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info@fabriquanta.com.ua

Ukraine, 61046 Kharkiv region, Kharkiv, Nemyshlyansky district, Alexandrovsky avenue, 2-A