Understanding Cargo Insurance: Coverage Options for Different Freight Types

Cargo insurance is a crucial aspect of logistics and transportation, providing financial protection against potential losses or damage to goods during transit. The type of coverage your company needs may vary significantly based on the mode of transportation used. Tailoring your coverage to match can help you financially secure goods throughout their journey, safeguarding your business against unforeseen losses.

What Types of Insurance Do Cargo Businesses Need?

Cargo businesses may require several types of insurance to form appropriate coverage. While exact needs may vary based on your company’s unique circumstances, including its location and methods of transportation, the following types of policies may often prove to be valuable investments:

• Commercial property insurance
• Inland marine insurance
• Marine insurance
• Air cargo insurance
• General liability insurance
• Professional liability insurance
• Commercial auto insurance
• Business interruption insurance
• Workers’ compensation insurance
• Commercial umbrella insurance

How Does Freight Type Affect Coverage Needs?

The type of freight your company uses significantly influences the specific coverage required:

• Land freight—Transporting goods over land typically involves risks such as traffic accidents, theft and damage during handling. Inland marine insurance generally can cover these scenarios.
• Sea freight—Goods transported by sea face unique risks such as rough weather, piracy and potential sinking. Marine insurance is tailored to address these maritime dangers, offering coverage for many sea-related incidents.
• Air freight—Air transportation, while generally faster, comes with risks, including loss, damage or delays. Air cargo insurance may cover losses involving goods transported by aircraft.

How to Get Cargo Insurance Near You

Contact Trucking Insurance Services LLC in Cumming, GA, today to learn more about various types of cargo insurance. Our dedicated and knowledgeable team can help assess your business’s needs and identify ideal policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.