Is Your Shipment Properly Insured? 5 Questions to Find Out

All carriers must provide initial insurance to protect themselves and their customers during transportation. However, as with all insurance policies, there are limitations to carrier liability when it comes to damage. If the insured carrier was not liable for something unexpected that occurred to your goods, you may want to have additional coverage in place. Additional coverage can be purchased either as a Rider, add-on of a business’s existing overall insurance, or purchased separately either as blanket coverage or individually on specific shipments as needed.

Not all cargo insurance is the same. For instance, there are different land cargo insurance policies and marine cargo insurance policies. Certainly, a shipper only moving goods by train or truck within the continental United States is unlikely to need marine cargo insurance.

However, if your goods must travel on the Great Lakes, for example, you may need to ensure that they are fully covered even for a short time on the water. 

Every shipment faces common risks and hazards such as theft, vehicle accidents, damage at sea, or natural disasters. But many shipments also face their own unique risks based on the product itself. Some questions to ask yourself is: Do your goods include possible hazardous materials? Has the product been securely wrapped and sealed? Is your material prone to attracting pests? Is your shipment of high value and target for theft? Any of these situations might result in damage that is not covered by a carrier’s standard insurance policy. Look for exclusions in all insurance policies and address any potential gaps with your trusted brokerage company.

Throughout the transit process, your product may touch many different responsible parties from the manufacturer, a carrier, a warehouse, a second carrier, a distribution center, a third carrier, retailer, and finally the consumer! With so many parties involved, you need a clear understanding between all partnerships on where the responsibility lies. Using a trusted brokerage, forwarder, or 3PL streamlines this process for you, as they communicate product value and necessary coverage required to seamlessly and confidently transport your valued goods.

Small businesses don't necessarily have to buy a blanket policy that covers all shipments during a period of time. You may be able to purchase individual coverage for a particular shipment, reducing the cost of buying proper insurance. If you ship cargo only irregularly, talk with your brokerage service to find out what one-time policies are available.

And when you begin to ship more often, price out the cost of a regular cargo insurance policy versus continuing to pay for individual coverage. 

Protecting your goods in transit can be a confusing and high-risk situation. Choose a trusted 3PL like JBS Logistics to mitigate risk and learn about which coverage you need for your product. At JBS Logistics, we can help address any of these concerns. Call today to learn about the protections, options, and answers our experienced logistics professionals can provide.