Benefits of Shipping Insurance

In every industry there can be problems that arise that were not predicted before the process starts. The shipping industry is no different. Just as other industries, being prepared and having insurance can be your only safeguard against the challenges of international shipping. Whether it is a single shipment or continuous shipments, getting cargo insurance can give you peace of mind to know that you are financially covered in the event of a problem. Insurance can be extremely beneficial, especially when a company is shipping multiple shipments. The insurance will typically cover the amount of the largest shipment and can be over a period of time if there is a steady flow of goods. Insurance companies will offer an annual contract instead of a separate agreement per shipment. Usually shipping insurance will cover your shipment from loss and damages as well as any major holdup in transport. It will typically cover 110% of the Cost, Insurance and Freight also known as the CIF. What a lot of shippers do not realize though, is that insurance can cover them for other problems as well. It can reduce risks for receiving payment for the shipment and it can also increase a company's borrowing ability with a bank. Knowing that a company has insurance as a backup can make the shipment more financially stable. There are many aspects of the supply chain that shippers need to worry about. Getting the appropriate shipping insurance can greatly reduce the risks involved. The question is: do you really need it? Only you can decide that.