Cargo insurance can also be called marine cargo insurance, which is an integral part of the maritime transport process. Cargo and vessel both need to be insured in order for a shipment of goods or passengers to make it from one location to another without any trouble and things going smoothly (e.g., no damage to cargo, the vessel not sinking).
How does shipping work?
In most cases, when you have something that needs to be sent from one place to another, someone will ship the item from where it originated from using some form of transportation medium, whether that’s an airplane, train, or truck. In many cases, it’s more efficient and/or cheaper if large amounts of items are transported together on a single mode of transport. All of the items are transferred from one mode to another at someplace called a “transfer point.” After all, items have been combined into one medium, you then send it on its way towards its final destination. At this point, most likely, people are shipping via ocean cargo since it’s usually cheaper and faster with the larger amount of products being sent.
How is insurance purchased?
Typically the shipper sends a Grand Trust Underwriters insurance requirement (IR) which basically tells their insurer how much coverage they need based on what they’re sending, where they’re sending it to, etc. There are two types of marine cargo insurance: open policy coverage and closed policy coverage. Open policies can be purchased directly through your provider or whereas closed policies must be purchased through a broker.
How does one find cheap cargo insurance?
As with most cases, finding cheap cargo insurance hong kong is almost always less expensive the better you are at what you’re doing. Cargo insurance brokers have vast networks which they’ve built up over their years in business and can usually find rates that beat everyone else’s hands down.