The Importance of Insurance in Sea Logistics Protecting Your Cargo

1. The Importance of Insurance in Sea Logistics: Protecting Your Cargo Have you ever thought of carrying your cargo in a hot air balloon without safety gear and security? Well, transporting cargo nowadays feels like that when you are not leveraging insurance to your benefit. Delivering shipments globally seems to be challenging primarily because of the unprecedented circumstances arising in the sea including the Red Sea crisis, fire in the cargo, long re-routes, and natural calamities hitting the ships. Considering these situations, think about the financial chaos that you can incur - lost goods, damaged material, multiple customs checks, etc. In these scenarios, it is always advised to take insurance on your shipment. Let’s talk about sea logistics insurance in detail. Sea Logistics Insurance Cargo insurance gives your shipment financial cover from natural disasters, piracy, or accidents during transportation under sea logistics. It is a deal between you and the insurance company that promises to protect your shipment of any size, whether on pallets or in a container or bulk cargo. Cargo insurance has a specialty that makes it attractive to most of the companies shipping their goods globally - cargo insurance does not run by the rule of one-size-fits-all like carrier liability. The insurance terms and conditions, prize, and coverage responsibility are tailored for particular trips or are designed to cover all your shipments for a specific time. Moreover, in case you need to claim the amount, having insurance can make the process much simpler and streamlined typically because you have already declared the value of your shipment to the company. Different Types of Cargo Insurance Policies Every cargo insurance comes with its own set of protection rules and regulations which can be customized as per your shipment and risk involved. Some of the common types of cargo insurance are shown in the image below. Reasons Why You Should Opt for Cargo Insurance One can only imagine a situation wherein a humongous amount of cargo tumbles into the sea or is hit by a storm. It can lead to a major loss for your company for the next 4 to 5 years until and unless you can recover an exuberant amount through fantastic sales within the next 2 years. So, if you feel it is almost impossible to regain the lost shipment value within the next 2 years, you will be required to choose the right insurance for your cargo. Cargo insurance enables you to claim the amount within no time because you have already declared your shipment commodities. If you consider buying insurance for your cargo, you get protection from transportation risk, pilferage and theft, natural calamities, compliance risk, disruption in the supply chain, and geopolitical situations.

2. Best Practices to Choose the Insurance policy for your Cargo Type Before choosing the cargo insurance read through the policy to understand terms and conditions, keep track of your documents including the invoices, bills of lading, and communications, get the cargo packed by a professional to reduce the risk of theft or pilferage, leverage smart packaging tools to track your shipment through the entire transportation duration, in case of any problem during the transportation report the situation timely, and render right information to the insurance company, Seek Professional Help Prior to applying for cargo insurance, consult a professional freight forwarder or logistics professional to choose the right insurance policy. Jeena and Company, with 124 years of experience in sea logistics, understand your shipping needs. Our seasonal experts aid you in choosing the right type of cargo insurance that gives your cargo full coverage against natural disasters, supply chain disruption, accidents, and theft. For more information, contact us or talk to our sea logistics experts. To Know More https://jeena.com/blog-read.php?slug=the-importance-of-insurance- in-sea-logistics--protecting-your-cargo