GSIS

The Need For Contingent Cargo Insurance

Whenever goods are transported across the country there is always a chance they may not make it to their destination.  If they do make it, they could be damaged.  This could be caused from ships being in bad storms, thefts, accidents and more.  In order to prepare for such a situation, there may be a need for added insurance beyond standard coverage for cargo.  

Contingent cargo insurance could be required if a freight broker is responsible for any lost cargo or damage not covered by other insurance.  The decision to purchase this insurance may be based on the type of contract between a shipper and the freight broker.  There are contracts that will make the freight broker responsible the cargo.  It’s also essential to have the right coverage if the carrier utilized fails to pay.  

This type of insurance enables brokers to establish a positive relationship with shippers and carriers.  It enables them to not be concerned about paying for losses on their own.  This can benefit the consumer by providing added protection in getting shipments to their destination.  

There are also policies available that cover any financial responsibilities associated with the transportation of the cargo.  There could be situations involving fraud committed by employees, pollution cleanup and more.  It can even cover such things as unintentionally breaking laws and regulations associated with moving different types of cargo.  

Contingent cargo insurance can also provide legal coverage should it be required.  In this situation all attorney fees are covered.  The expenses associated with any type legal defense are quite costly.  This type of coverage will be very valuable if any type of situation occurs that requires legal representation. 

If cargo is shipped by air, sea, truck and more it’s important to have an insurance plan that provides all the necessary coverage.  It is always best to analyze insurance needs based on the type of cargo, the shipping agreement and the method of transportation utilized.