8 Types of Cargo Insurance

When shopping for wholesale cargo insurance, you can find policies covering many types of losses. The lowest priced option may not provide the level of coverage needed depending on the kind of cargo covered by the insurance, the mode of transportation, and the distance over which the freight will travel. Following are some coverages that can be included in your policy.

  1. Refrigeration breakdown policies cover losses due to malfunctioning refrigeration equipment.
  2. Loading and unloading insurance applies to damage or loss while the freight is being moved to and from the truck or ship.
  3. Water damage coverage refers to freight damage due to leakage or other moisture issues.
  4. Debris removal riders cover the expense of removing cargo dropped onto roads or waterways.
  5. Pollution liability policies apply to the cost of cleaning up pollutants that spilled from either the vehicle or freight.
  6. Sue and labor coverage further protects an insured party against reasonable expenses to minimize or avert additional losses to the insured property.
  7. Earned freight coverage reimburses the insured party for income that would have been made had the cargo remained undamaged and delivered as promised.
  8. Infidelity/dishonesty covers losses due to driver theft.

Be sure to carefully review any wholesale cargo insurance policy to confirm that freight is covered for the many possible types of loss or damage. Comprehensive freight insurance coverage can be a critical step towards meeting risk management goals.