Theft, fire, and damages are some of the common devastating perils faced by distributors, wholesalers, retailers and other business owners that convey goods from one place to another. Thankfully, a customized transportation insurance policy can cover any of those damages, and help keep your business afloat. Transportation insurance covers goods and property in transit. The coverage includes transport by land, water, and air.
How Does Transportation Insurance Work?
Transportation insurance pays compensation for your damaged, delayed, or stolen goods in transit. You may choose to get the basic or go for more comprehensive coverage, depending on the kind of protection you want for your business. The cost of insurance and coverage amount will be based on some factors, such as the value and nature of goods you are transporting, and the distance, whether domestic or international.
Types of Transportation Insurance
Each means of transportation and goods has its own peculiarities, and as such, will require a customized policy that will best suit the business. Transportation insurance products include:
- Taxi Insurance, Limousine Insurance, and Bus Tour Insurance: Needed to cover your vehicle and your passengers. It should also include a business interruption coverage, which pays for income loss when your vehicle breaks down, and require a service or repair.
- General Cargo Insurance: This can cover both the goods in transit and the container. It comes in three basic clauses, namely, A, B, C. Clause A is the most robust category that offers the widest coverage, followed by clause B, while C offers the lowest coverage. The wider the coverage limit, the higher the premium rate.
- Goods in transit insurance: This product provides coverage for goods against fire, accidental damage, or theft when in transit. The coverage includes when the goods are being loaded or offloaded. It has two types, which are
- All risks, which covers goods from the loading stage till the final destination, and
- Restricted cover, which only provides coverage if the conveying vehicle is involved in an accident.
- Marine Cargo Insurance: Covers goods transported by water or air. It comes in different types, which include voyage policy, open cover.
- Voyage Policy covers goods from a specific point to another and ends when the goods get the covered destination.
- Open Cover is particularly essential for businesses that transport goods frequently. It offers blanket coverage, which covers all shipments made for one year, and as such help saves cost getting a new policy for each journey.
- Rail Insurance: This provides coverage for those who …in rail business, such as passenger and freight operators, locomotive owners, storage facilities, etc.
- Airfreight insurance for goods transported by air. The premium rate is calculated based on the value and nature of goods and route to the destination.
Why Your Business Needs Transportation Insurance
Casualties and theft are commonplace in the transportation business, and can sometimes bankrupt a company if there’s no reliable coverage. Transportation insurance is a risk transfer plan that can help you weather the storm of adverse financial effects capable of ruining your business.