Wednesday 8 July 2020
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What are the advantages of using cargo insurance?

Integrity and quality delivery are the key parts of any business. If you own an import and export business then you must know that how important it is for you to deliver the product in its proper condition.  In export import business every time you need to invest big chunk of money in order to ship the product but it is quite often seen that business owner ignores the importance of cargo insurance due to which sometimes they have to suffer from loss. This is because delivered item may not be as per the expectation or get damaged during the delivery due to which business owner who delivers the product has to suffer from huge money loss.

How to avoid this situation?

In order to avoid this situation, you can take Marine Cargo Insurance which provides a very good cover for your shipped product and covers you against any kind of potential loss. This insurance provides many different advantages such as –

General average – in order to release your cargo you have to fill the bond or need to deposit the cash even when there is no damage or loss. But when you purchase this insurance you don’t have to fill the bond as insurance company will manage the situation. On the other hand, the best benefit that you get from this is that general average is considered as a principle which is accepted internationally. Under this principal, it is included that if any accident of the vessel takes place then the loss amount will be shared by all the parties.

Compensation – if your cargo gets damaged or lost then you might lose very heavy amount of money which can damage your total business structure if you have insurance then your insurance company provides you the compensation for the loss suffered by you.

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