Shipping products domestically and internationally can be expensive for businesses, and the likelihood of arriving with a portion of the goods damaged is high. Paying for lost and damaged cargo can quickly eat into a company’s profit, so having contingent cargo coverage insurance is one way to protect both your company’s bottom line and reputation.
How Does Cargo Liability Benefit a Company?
While product loads are often shipped with no incidents or problems, there are several situations that pose elevated risks for damages or even entire losses. The most common occurrences are listed below.
- Natural Disasters
Many of these potential problems cannot be predicted and therefore are impossible to avoid completely. Cargo liability may cover the entire cost of damaged or lost goods so the company does not have to pay to replace the product. Accidents that result in damaged and lost cargo can cost a business a large sum of money.
What Methods of Transportation Does Cargo Liability Cover?
Businesses often use a variety of methods to ship products long distances. A cargo liability policy usually covers any traditional method of transport, such as a plane, ship, train, or truck. Choosing good contingent cargo coverage policy insurance can help increase your company’s profit by preventing it from paying for lost, damaged, or stolen goods.