Cargo insurance for managing shipping risks
Cargo Insurance: Proactive Risk Management For Uncertain Times
International shipping is not without risks. While it is not common that shipments get damaged or stolen during transit, such incidents do occur occasionally when your goods cross international borders. Traffic accidents, natural hazards or even human negligence are some of the risks involved in transporting goods. At Delta Global Solutions, we offer cargo insurance solutions to protect your business against these unforeseen events.
What Is Cargo Insurance?
Cargo insurance is a way to protect your goods from physical damage, loss, or theft during transit. It is important to remember that outsourcing your transportation to a freight forwarder does not mean your goods are protected during transport or automatically insured against shipping risks. Responsibility to insure the cargo lies with the buyer or seller, depending on the Incoterms agreed between the parties exchanging the goods. However, you may explicitly instruct your freight forwarder to insure your shipment, specifying your coverage needs.
Liability Limits Of Forwarders
Freight forwarders are intermediaries purchasing services from carriers who actually transport your goods. As such, freight forwarders’ liability is limited by international conventions governing various modes of transport. For instance, in the case of air freight, the Warsaw Convention and the Hague Protocol limit the forwarder’s liability to 19 SDR per gross kilogram of the cargo lost or damaged.
It is also common practice in many countries of the world to further limit freight forwarders’ liability through standard terms and conditions legally imposed by industry associations. For your freight claim to be considered as valid, you must pay the freight charges in full and prove the carrier's or forwarder’s negligence.
Our Cargo Insurance Services
While cargo insurance may seem to add to your shipping cost, the benefits of ensuring your high value goods far outweigh the cost of potential financial risks. To avoid cargo loss, delay or customer service issues, we recommend that you take on adequate cargo insurance.
At Delta Global Solutions, we provide a wide selection of cargo insurance options for shipments traveling by air, road, rail or sea. Depending on your cargo insurance needs, mode of transport, distance or invoice value, we can offer you tailored coverage that meets your specific requirements.
Proactive Risk Management
Proactive management of risks is part of Delta Global Solutions’ risk governance framework. We work with some of the best insurance companies in the market to protect your goods as they travel across international borders. Our cargo insurance solutions will ensure stability of your business in the long term. For additional advice, you may check out our 10 Strategies For Managing Shipping Risks or contact our logistics experts or consult our risk management experts.