Types of Transport Insurance
At times, the goods get lost or damaged in transit at the time of their buying and selling. Whether you are buying and selling in the national market or international market, there is always a risk. To overcome this risk, the members involved in the supply chain insure their goods from the damage and loss. In this way, they limit their responsibility or liability for the damage and loss. If you want to know how the transport insurance can play an essential role in your business and what the important types of transport insurance are, then this post is for you. It will explain the importance of transport insurance and its necessary arrangements
Cargo insurance is a type of transport insurance that provides cover for goods transported through road, sea, air or rail. This insurance covers damage during the process of loading the products and due to the negligence of the workers. The amount and cost of policy rely on the value of goods, route to transport goods and the date at which the policy expires.
The land transport insurance policy covers the risks for land transportations such as trucks and other small vehicles. It provides coverage within the boundaries of the country that is why it is known as national insurance. It covers the goods against collision damage and theft.
The marine transport insurance covers the risk of goods that the traders transport via sea or air. It covers the goods against damage due to the loading and unloading. This type of insurance not only includes national boundaries but international transportation as well. Such kind of policy can be a renewal or permanent.
Inland Transportation Insurance
The inland insurance policy covers the risks for each shipment individually. This type of insurance covers the damage to the goods due to loading, unloading, shipping and theft. It usually provides coverage whether the transporter transport the goods in his fleet or he takes other’s services.
International Transportation Insurance
Traders use this type of insurance in foreign trade due to which it needs to follow the contracts of export and import of goods. The terms and conditions of this insurance depend on the legislation of each country. Its coverage is usually the same as that of the domestic insurance policy.
Open Cover Insurance Policy
This type of transport insurance depends on specific timescale or total value. The traders can renew this policy after its date of expiry. In the case of a permanent system, traders can hold multiple shipments in a specific period.
Which type of transport insurance can work for you?
Transport insurance not only covers the trucking operations, but it also includes other services as well depending on your transportation business. There are various factors on which the type of transport insurance policy and level of coverage depends. The first factor is the owned and non-owned goods that you transport. Moreover, it also depends on the hazardous materials and the operations of your business. To choose the right insurance policy for your transport business, you need to take the services of an insurance professional.