Why Cargo Insurance Is Important in International Shipping

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Why Cargo Insurance Is Important in International Shipping
Why Cargo Insurance Is Important in International Shipping

During the shipping process, your packages are exposed to certain risks and can be stolen, damaged, lost, and more. Cargo shipping allows you to financially recover from these types of losses, which is very helpful if you ship large quantities of items. Here are some of the reasons why cargo insurance is important in international shipping.

Lost Cargo

Unfortunately, losing your cargo in the shipping process is possible, especially when shipping overseas. Cargo insurance will reimburse you financially for your loss. Even if your cargo is lost, you will be able to rest easy knowing you will recover financially with cargo insurance.

Damaged Cargo

If you sell fragile or breakable items, then you need to purchase cargo insurance. This insurance will cover the cost of any items broken during the journey. Even if your items are not fragile, it is always best to insure them just in case.

Stolen Products

Sometimes, packages are stolen while en route to their next destination. When shipping internationally, you never know how many people will come into contact with your packages. In addition, shipping by sea has one of the highest risks of theft, so it’s best to protect your cargo at all times.

General Average

General average is when a large loss occurs, such as a fire, and all cargo holders share in the financial loss. Some cargo insurances will cover these extensive losses so you and your business will not suffer financially. When obtaining cargo insurance, be sure to research and find out if your plan covers general average.

These are the reasons why cargo insurance is important in international shipping. International shipping can be a hassle, which is why many companies prefer to use international freight forwarding services and companies to do the work for them. At Diversified Transportation Services, we work with freight forwards to ensure your packages reach their destinations safely. For all your international shipping needs, remember to reach out to us here at Diversified Transportation Services.

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