Benefits of Cargo Insurance

Cargo insurance covers transits carried out in water, air, road, rail, registered post parcel and courier.  Following aspects are covered under the benefits of this insurance:

All Risk Coverage

This coverage provides extensive protection against damage or loss due to external factors. Though, this is called all risk coverage but still, people should know the aspects included and excluded in the policy. Under all risk coverage, included aspects are:

• Damages due to inappropriate packing
• Infestation
• Cargo abandonment
• Customs rejection
• Employee’s dishonesty

General Average Coverage

This coverage is basic requirement in the marine cargo transits. More specifically, it covers only partial loss occurred to the shipment. It requires all the other cargo holding owners on the ship to pay compensation to the periled cargo owner.

Warehouse to Warehouse Coverage

This coverage is applicable when shipment is unloaded from the ship and it gets transported to the customer’s warehouse. Insurance companies are very particular about compensating only the insurance holder’s cargo, not other owners’ cargos.