Wait, My General Liability policy doesn’t cover my goods in transit? You need Cargo Insurance!


Wait, My General Liability policy doesn’t cover my goods in transit? You need Cargo Insurance!

What is General Liability?

First things first! General Liability does not have anything to do with Cargo Insurance. Instead, it is designed to protect against liability TO OTHERS, not FOR YOUR STUFF! Hint – think slip and fall on a banana peel by a visitor to your company. General liability does typically have a business property ‘add-on’, but that is for your company’s stuff located in your office. It does not usually cover anything off premises or in transit.

The word ‘General’ oftentimes gets viewed as a catch all and many shippers assume they have coverage in place when their goods leave the facility. This can be a costly assumption. That is especially true if you are a small company that can’t absorb the hit of a large cargo loss. If your small business forgoes cargo insurance thinking that your General Liabilty will cover you you are at risk of a major surprise. Imagine if you were to sustain a $250,000 loss of goods!

Transportation risk is the realm of cargo insurance and marine insurance – coverage that is designed to cover goods on the move.

What is Cargo Insurance?

Cargo Insurance is just what it sounds like, insurance for your goods while they are in transit. From across town to across the world, it covers all types of transportation risks. With so many different ways to have cargo lost, damaged or stolen – it’s imperative if you are shipping goods anywhere that you procure reliable cargo insurance.

You can obtain Cargo Insurance on single shipments relatively easily, and the best and most reliable online solution is www.cargocert.com. It’s a simple process to insure your goods and you get an instant certificate of insurance from a major carrier. This sort of protection will help you sleep at night as well guarantee you can satisfy your clients contracts. For the minimal price for coverage – it’s well worth it to protect your company’s future.

When looking for the right cargo insurance package, it is important to evaluate the following ‘key terms’:

  • Scope: Is the coverage all risks, named perils, catastrophic? In other words, how good is the cargo insurance?
  • Duration: Is the coverage door to door, port to port, or somewhere in between?
  • Deductible: Always pay attention to the deductible or special deductibles.