Cargo Insurance Protects Against Profit Loss
Once the freight is on the truck and on its way to its destination, it is vulnerable to different risks. If the cargo is damaged in transit, your business has to cover the loss. This can be devastating if you don’t have motor truck cargo insurance.
Benefits of Cargo Insurance
The main reason behind investing in cargo insurance is to minimize your financial risk in case a shipment is lost or damaged while in transit.
Some benefits of cargo insurance include:
- Protected cash flow
- Easy loss reporting
- Efficient claims process
Most cargo insurance policies can be tailored to your operation. If you have specific or specialized risks, the broker can work with you to create a custom plan without gaps in coverage. Cargo insurance may even cover cargo while it is still in the warehouse.
Types of Risk
As your freight travels between locations and through different hands, the risk exposure is relatively high. For long-distance cargo, the risk is higher because of the amount of time the trucker spends on the road. There is more likelihood for cargo to be stolen, vandalized or damaged. While carriers may be legally liable, their limits may be less than the value of the goods.
The risks to cargo in transit and the benefits of cargo insurance should make your decision simple. Cargo insurance can protect your business from devastating financial loss.