Cargo

Cargo insurance is necessary as various laws limit the liability of transportation companies.

For example, the Hague Rules/Carriage of Goods by Sea Act (COGSA) limits the liability of shipowners to US$500 per unit, and also relieves shipowners of all liability in the event of one of 17 events occurring. These include war, acts of God, strikes, riots, acts of the pilot or crew, and attempts to save life at sea. For air carriers, the Warsaw Convention limits liability to US$9.07 per pound for international shipments and just US$0.50 per pound for domestic shipments.

As a shipper, you must insure your cargo to fully recover from a loss.

Cargo insurance provides protection against "all risks" during shipping, whether by land, sea, or air, helping you minimize financial losses in the event your shipment is damaged or lost. By purchasing cargo insurance, you can benefit from the following advantages:

• Cash flow is safeguarded from any unforeseen stoppages or interruptions.
• The process of reporting losses and handling claims is streamlined.
• The impact of business disruptions is reduced as your organization can continue to operate amid losses.

With the right coverage, you can skillfully navigate the changing risk landscape to minimize your shipping-related losses and liabilities.