Insurance of cargo

Corzhens

Active member
Does your company get insurance for the cargo that you deliver? Some companies forgo the insurance particularly when the delivery is for a short distance only. Their reason is that insurance will only add to the cost. And they only insure the cargo when the trip takes more than 5 hours of travel and the distance is more than 100 kilometers for it would expose the cargo to some risks like accidents or even hi-jacking of the truck. Their reason for not getting an insurance is just to save money.

Do you think it is economical for the company to save on insurance of the cargo?
 

Vampa

New member
Re: Insurance of cargo

It's better to be safe than sorry. As there could be many reasons why goods in transit can be damaged or lost, you should insure your shipment. If you don't in case anything happens you'll probably make a huge loss. The distance shouldn't matter as what you are after is the protection of your goods and as damage can occur anywhere the goods should be insured.
 

rz3300

New member
Re: Insurance of cargo

Well anytime that you have something that is being dealt with by others, you can never be too safe when it comes to having insurance. I have seen and heard of some horror stories when it comes to things like this, but thankfully they were nothing that really affected me. There is just so many things that can happen to your goods, and given the important of relationships with businesses and suppliers, it is essential to make sure that you are covered if anything should happen. Thanks for sharing.
 

neural

New member
Re: Insurance of cargo

It might depends also how valuable is the cargo to imply a great lost whether an irrecoverable accident happens (Is set on fire, fell onto a body of water, awful car crash). You have to take into account that the life driving the cargo truck also applies for insurance, and even is more important than millions of dollars of goods being transported, of course, this is from an ethical point of view.
 

Norm

New member
Re: Insurance of cargo

We get our supplies from overseas so we do take insurance because we depend on them to have something to sell regularly. It wasn't really our decision though as the head of the company is the one who sends the goods here and we just sell it, but it's good to know that there is a little bit of a security blanket since we ship those goods from far away. I wouldn't know when to make the decision that insurance isn't necessary though, but for me I think as long as the feeling of security is worth the cost I would be for it.
 
Top