Companies that export goods understand that there are a wide variety of risks for transporting goods to other countries. Having an importation bond in place may be able to protect your company from paying extra fees or replacing the cost of products damaged during the shipping process.

What Is Importation Insurance?

Also called a customs bond, this kind of insurance is usually used for imported goods and typically involves three parties: the insurer, the principal seller, and Customs & Border Protection.

When companies import products, those items may go through customs upon their arrival to the country. Customs and Border Protection may require a fee for the imported goods, and if they cannot receive the fee from the buyer, if there is an importation bond in place, they can get the money from the insurer.

Why Is Having a Customs Bond a Good Idea for Businesses?

Companies who export their goods may find in beneficial to cover their cargo with insurance because unexpected events happen. Buyers may decide not to pay for damaged goods, or they may require an extra fee for going through customs. To protect your exporting company from fees or even lawsuits, having a customs bond may be the best precaution to take.

An importation bond can cover the cost of fees or damaged items so that your company is not responsible for the cost. Having this kind of insurance may protect your company from expensive lawsuits.