B2B Pay is not offering shipping insurance, and doesn't have immediate plans to offer shipping insurance
World trade happens mostly on the sea, in a vast array of ships. Electronics, coal, cars, machinery, textiles, and many other types of goods and materials are transported across the ocean every year. Shipping insurance offers protection against loss or damage of ships, cargo, and other materials transported by ship. This type of insurance is made available for the buyer, shipper, or ship owner. The coverage for shipments is termed ‘cargo insurance’ while the coverage for the ship is called ‘hull insurance’.
Before Shipping Off
Prior sending the insured goods, the insurance holder is required to pack all the goods and materials properly to withstand the shipping process. Insurance companies look for proper documentation of all shipment contents. The insurance holder is also recommended to take pictures of the shipment for ensuring its maintained condition.
Benefits of Shipping Insurance
Shipping insurance brings a peace of mind to the insurance holder by offering benefits like claims control, asset protection, local presentation, cost-effectiveness, and general average guarantee. In addition it provides other features like customization of pricing and coverage, plus continuous and automatic coverage. Shipping insurance can be complex due to the international nature of the shipping industry, but it is indispensable for large shipment companies. The following are the general coverage aspects of shipping insurance.
Aspects of Shipping Insurance
Shipment coverage
Shipping without insurance can lead to massive financial losses if your shipment gets damaged or lost during transportation. The shipment coverage policy can be lengthy and complicated due to processing and carrier liability limitations of international law but nothing beats the assurance that is provided by this coverage i.e. the safe delivery of your shipment.
Accident Coverage
There are no specified lists of accidents linked with shipping insurance policy, which means this type of insurance covers all types of accidents and dangers regardless of the loss cause. General risks included in this policy are temperature variations, theft, and hijacking. Other perils included in this policy are inappropriate handling, rain, salt water exposure, and vessel sinking.
Location-based Coverage
Shipping insurance coverage covers all the shipments during their transportation on the vessel. However, loss or damage can occur to the goods when the vessel is anchored at the port, during road transportation, and even at the warehouse. Location-based coverage ensures against all damages associated with transportation from the beginning to the end of the journey. Some insurance providers offer these plans individually whereas others offer them in a single plan. Insurance holders should, therefore, make a thoughtful decision before choosing an insurance policy.
Types of Shipping Insurance
There are several types of shipping insurance but the four major ones include:
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Cargo Insurance covers the vessel’s cargo and the belongings of those on board. Under this type of shipping insurance, the holder can only claim the goods on the vessel.
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Freight Insurance protects merchant ship corporations that stand to lose money after losing cargo due to an accident.
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Hull Insurance covers the ship itself and safeguards the ship’s owner from the eventuality of damages during a voyage.
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Liability Insurance is applicable when compensation is to be provided to a third party due to a crash or collision, and includes coverage of induced attacks.