When it comes to freight shipping, insurance is an important consideration. While it is not required by law, it is highly recommended that both senders and recipients of cargo take out insurance to protect against loss, damage, theft or unforeseen events during transportation. This ensures adequate compensation for all parties involved and gives you peace of mind. The cost of freight insurance is usually around 0.5% of the total value of the cargo, and can vary depending on the type of merchandise, the origin and destination, and whether it is shipped in a closed or open container. The CIF (Cost, Insurance and Freight) is a method used when shipping goods by sea or waterway.
It includes the cost of transferring and shipping the cargo, as well as insuring it until the goods have been delivered to the buyer's port of destination. This can be beneficial for buyers who don't want to go to the trouble of taking out insurance, paying for transportation costs, and taking full responsibility for international shipping. The easiest way to calculate the insured value is to add the value of the merchandise on the commercial invoice to the cost of freight and add ten percent to cover additional expenses. It's important to review the terms of your insurance policy, specifically the valuation clause, to ensure how the policy expects assets to be valued. Shipping insurance is an important part of any company's risk management plan. With third-party shipping insurance, you can be sure that your items will be covered in the event of loss or damage during shipping.
Companies that carry a large amount of ocean cargo do a good job of insuring against workers' compensation claims and fires in office buildings. For this reason, it is essential that you know the correct classification of your cargo before embarking on the search for transport insurance. The maritime ocean policy for travelers, called Cargo Elite, is designed for importers, exporters, manufacturers and cargo agents to ship goods by sea.