Freight insurance, or goods insurance, is an insurance policy that protects goods’ owners against financial loss when goods are on their way from supplier to recipient. It is the goods’ owner's responsibility to insure the goods. Any business that sells, buys or otherwise has goods on the road, should consider whether a freight insurance should be undertaken. If you have freight insurance, the claim against your forwarder will be handled by your insurance company.
As a trading company, are you considering freight insurance?
Here are some issues you should consider:
- Can the company withstand a loss equal to an entire consignment?
- Does the company want financial compensation for any loss, with an insurance company assuming the risk for the goods, and replacing any damage/loss incurred?
- Should the company only insure against catastrophic losses, or does it want “complete coverage” ?