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Archive for the ‘Shipping Insurance’ Category

Important Items to Get Shipping Insurance For

Thursday, June 22nd, 2017

It has been argued by many that anything you ship anywhere should be protected with shipping insurance. That being said, it is not always possible for people to spend the extra money on such policies for every little thing.
If you are someone who has decided not to invest in such protection for every package, it is important for you to at least consider the added protection on the following kinds of packages.

International Packages
Any time you send something across the national borders, you will want to purchase shipping insurance. While the mail system has come a very long way since the days of the Pony Express and the telegraph, it can still be quite the ordeal.
If you have loved ones or business clients in distant lands, then you will want to be sure that your package has the right tracking and protection in place. This small added cost will give you the benefit of knowing where your package is and will ensure that the postal workers take special care of the parcel.

Fragile Packages
Believe it or not, simply placing a fragile sticker on a box is not enough for postal workers to really use added caution in their handling of your package. When you purchase the extra protection, however, these workers will be required to treat your package with an increased level of care and concern. There are some very strict rules involved in the professional labels€”and some very harsh punishments for those who do harm to such parcels.
Most fragile packages also tend to be quite valuable. This will be covered in more detail in a later section, but it can be helpful to know that the value of your fragile items will be refunded to you should something happen to the delicate contents in transit.

Packages Containing Food
Care packages for loved ones should always contain some kind of food for the soul and the stomach. Getting the included goodies from one point to the other without being smashed and ruined is another story.
If you are planning on sending food through the mail system to anyone, then you will want to purchase the added protection that the insurance policies provide. The added care and gentle handling will give your receiver a much better chance of getting their edible goods in good condition. Any time you feel the need to ship perishable items, you will also want to at least consider the addition of some extra protection to the packaging itself.

Items of Great Value
As was stated earlier, the mailing system has become a lot better and more reliable in the past years. Sadly, accidents still happen and human error still occurs. If you have to mail something of great value, then it is important for you to get shipping insurance. Simply put, this kind of purchase will allow you to reclaim the value of the shipped items should something happen in transit. The cost of the insurance policy will be much less than the total value of the items you are shipping. That makes this a very simple decision when the ideas of cost and liability are weighed. You would hope that such a thing would never be needed, but the added protection can give you some retribution should the unspeakable occur. By purchasing the protection, you will be purchasing some peace of mind, which is something everyone could do with more of.

The Role of Shipping Insurance for Cargo

Monday, August 6th, 2012

As with health, automobile, and life having good insurance coverage is important. The uncertainty involved with international shipping also requires that competent insurance coverage be contracted. Once “insurable interest” has been proven, meaning there is no question as to who the goods belong to and that financial loss will occur in a case where the goods were damaged or lost during transport, then the insurance policy is binding and valid.

The responsibility of the international shipping company in regards to the cargo they are transporting varies according to international conventions. The true value of the goods is not always covered by the policy. The actual value that is protected will end up varying from country to country. So it is prudent to thoroughly check what the laws are in the countries you are moving from and to.

Contracts of Sale and Insurance

The most common risks that occur in international shipping are damage, delays (which include customs and quarantines), and complete loss of the cargo. How these risks are settled between the buyer and the seller of the insurance policy should be explicitly detailed within the contract using what is called Incoterms. Incoterms are a internationally recognized set of trading terms which define exactly when costs and risks change from buyer to seller and vis-a-versa. In fact, the Incoterms detailed in the contract will have a direct impact on the cost of the policy since the more risks that are assigned to you, the more insurance coverage you will need to recoup your losses in case of an event.

For example in Ex-Works, or EXW contracts, the seller of the merchandise is recognized as having delivered the goods once they are made available for pick up at his factory. The responsibility for insuring the merchandise falls on the buyer from that point on. With Delivered-Duty-Paid, or DDP contracts, the exposure to risk remains on the seller until the merchandise has arrived at the location designated by the buyer free from all import duties and regulations. Therefore, the seller will need to contract an insurance policy until that point.

Although, there is no obligation to buy an insurance policy when executing a EXW and DDP contract. Only the Incoterms CIF, Cost Insurance Freight, and CIP, Cost Insurance Paid, require an insurance contract, and in both cases the obligation falls on the seller.