Jul 24

What is Cargo Insurance?

There are many interesting nuances to worldwide shipping and logistics companies. In particular, freight forwarders in Edmonton are not only responsible for the successful shipment of products and goods overseas, within Canada’s borders, or internationally. They are also responsible for the safe delivery and proper handling of those goods and services, to a degree.


A particular nuance of the freight industry is cargo insurance. Today, you will learn about cargo insurance and the types of coverage offered. As well, some of the essential considerations you need to make for your cargo shipments.


Freight Forwarding and Cargo Insurance

What is Cargo Insurance?

Cargo insurance is a service that provides financial protection for your goods and services. Cargo insurance varies depending on the jurisdiction and country where you purchase the service, and the coverage can fluctuate as well, but more on that later.


Who Offers Cargo Insurance?

Typically, freight forwarders in Edmonton or other cities offer cargo insurance. As they are the handlers of your product logistics, it makes sense for them to provide you with peace of mind. Additionally, they are also close-at-hand to you, which gives them better access to provide you with this helpful service. 


What Does Cargo Insurance Cover?

The coverage of cargo insurance varies depending on the country and jurisdiction of your plan, as mentioned above. Typically, though, you would use cargo insurance for overseas travel to protect against theft, damage, or loss. However, there is quite a lot that can go wrong in international shipping and travel.


Essential Considerations of Freight Forwarding and Cargo Insurance

As a result, the concept of “comprehensive coverage” doesn’t really apply with cargo insurance. Consider how easy it would be for acts of God or inclement weather to damage your cargo during it’s (potentially) long journey. Or, a sudden or unexpected change to the regulations of the receiving country could play a detrimental role to your insurance. 


Ultimately, there are quite a few issues that are possible with international shipping, and cargo insurance cannot cover them all. The most coverage you can expect is labelled “all risks,” “broad form,” or “legal liability.” These types of insurance provide broad coverage, but you will likely need to consult with your insurance provider to get the coverage that makes you feel comfortable your shipment is safe.


Ocean-Air Freight Ltd is your premier logistics and freight forwarder in Calgary. Since 1990, we have been providing individuals and companies with top-quality shipping and freight forwarding needs. We pride ourselves on our professionalism, experience, and adaptability. We offer a range of services including air, ocean and surface freight for international, cross-border and domestic needs, cargo insurance, import and export needs, documentation and much more. From Europe to North America, we can handle all your deliveries and freight requirements. For the best freight forwarder in Edmonton, Calgary and Saskatoon, contact our logistics company in Calgary today.