An Introduction to Freight Insurance: What Is It? | GoShip: Online Shipping Platform

An Introduction to Freight Insurance: What Is It?

Shipping freight can sometimes be a bit stressful, so we’ve put together a guide to make sure you can sit back and relax throughout the process. There’s a lot to keep an eye on, but with the right precautions taken before your cargo hits the road, you can plan and ship without giving it a second thought. At GoShip, we want you to know that taking these precautions will allow you to feel confident that your cargo will be safe and sound no matter what.

What is freight insurance?

Freight insurance, also known as cargo insurance, protects the owner or consigner of goods for possible physical loss or damage from outside causes during shipping. The insurer is responsible for reimbursing the policyholder for the value of the goods if they happen to get damaged or perish while in the hands of the shipper. It is usually available from the shipping company itself, or it may be purchased from a third-party insurer as well.

Types of Freight Insurance

There are a variety of coverages available for your freight. It is important to become familiar with the different options before purchasing a policy. However, be aware that coverage is not catch-all, so consider what you’re shipping and how it will be traveling. Below are some different options:

  • Annual – This policy stays on the records for a year, and involves sharing in-depth information about the company’s shipments, the maximum value of the freight in any one shipment, and annual turnover. This is perfect for frequent shippers, so you know each freight shipment is taken care of in advance.
  • Named Perils – This insurance covers the damages caused by perils that are specifically listed in the policy.
  • Open Cover – These policies provide coverage to all shipments, no matter the value, from point A to B, with no expiration date.
  • Single Shipment – This is a one-time-only policy that applies to a single shipment. It covers a shipment from origin to destination and takes the least amount of time to generate.
  • Total Loss – This policy means that your goods are protected in the event of catastrophic events or total loss. It does not cover a partial loss.

Freight insurance policies are put in place to protect your freight against loss and damage. No matter how your freight is traveling, you can find a policy with the appropriate coverage for what damages or losses the journey may bear. This insurance will protect your goods on their way to the final destination, and there are many types of coverage available to make sure that you have the best protection for your freight!

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