What is included in a Typical Freight Insurance Plan?
In the freight industry, your cargo is your most important asset and any damage to merchandise can result in extensive costs. You will want to be protected against any loss or damage done by those handling your merchandise. However, where do you get started when selecting a freight insurance plan and what is included in most? There are a few basics to consider as you get started.
Your precious merchandise will likely spend significant time sitting in warehouses throughout the world. While you would hope that most employees in these locations would handle items with care, this may not always be the case and accidents are frequent. Warehouse coverage protects you against problems that might arise while your merchandise is stored. If an item is lost or damaged, a customer will be directly paid for the item, and you will not be responsible for the lost profit.
Damages incurred while merchandise is in transit can be even more common and simple bumps in the road or lack of careful packing can result in extensive damage. Cargo insurance will similarly pay for items that have been destroyed in transit.
Your profits are directly dependent on the safety of the items you are distributing, and there are a number of obstacles as they are transported. You want to make sure that your property and profits are safe. While these basic freight insurance plans will help you get started, you will also want to consider additional plans as you move forward.