Refrigerated Shippers: Do You Have Proper Cargo Insurance?

October 26, 2018

Cargo Insurance

The Benefit of Insuring Your Cargo

While cargo losses on the ocean have continued to trend downward, accidents and what the industry calls “Acts of God” are possible. To mitigate these risks, you should always purchase cargo insurance to cover any exclusions or underpayments resulting from laws like The Carriage of Goods by Sea Act (COGSA), which limit the liability of carriers and the amounts carriers must pay in the event of cargo loss or damage.

Determining Best Policies

There is a difference in what a customer or their carrier is legally required to carry, and what makes good business sense. If done right, nothing in the supply chain protects a shipper’s financial interest as well as “All Risk” door-to-door cargo insurance. It is a specialized insurance coverage designed to protect goods against all risks of physical loss or damage from any external cause during international and domestic transit.  Coverage applies to all modes of transit throughout the supply chain on a global basis, and in the case of Whitehall’s “All Risk” Cargo Insurance product, carries a zero deductible for approved, general merchandise.

As with any insurance policy, there are some exclusions, such as for loss, damage or expense caused by delay, inherent vice, insufficient packaging, and pre-existing conditions.

Advantages of Whitehall’s Insurance Program

  • Comprehensive “All Risk” Warehouse-to-Warehouse coverage
  • 12-HR reefer breakdown clause (Usually the market offers 24-HR)
  • Strikes, Riots and Civil commotion
  • Hijacking, Theft
  • Physical Damage caused by USDA or Customs Inspection
  • General Average
  • Tornadoes, Hurricanes, Flood Protection

The only way to protect your cargo against loss is to have cargo insurance coverage. If you don’t currently have an experienced cargo insurance agent to guide you through the process, we invite you to contact Whitehall Insurance, before your next cargo move.

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