Cargo insurance is one the most effective methods to decrease transportation risks. However many companies in order to save their money refuse to insure their cargo, and hope that “things will come right “. The experience shows that such saving is risky, because in case if cargo is damaged or lost material losses may be severe.
Miracle movers, Toronto movers advise you to approach seriously cargo transportation. Since company’s financial director is interested in minimization of possible financial losses, he should imagine clearly against what types of risks the transported cargo is insured and which are factors that must be taken into account.
Today miracle movers, Corporate moves will share with you their experience regarding cargo insurance.
What should we take into account in case of cargo insurance?
Company may decide to conclude an insurance agreement at any time before cargo transportation. The conditions of insurance depend on cargo type, route and so on. The main document which stipulates these conditions is the agreement with insurance company.
Types of agreements
Each insurance company works on the basis of license granted by the official body and special document – rules of insurance, which are drawn up by each company. The rules describe types of insurance agreements, which may be concluded by the company, list of insured risks according to each type of the agreements, as well as mode of payment of losses to the insured party. Most of the companies have similar documents, because they are based on the Institute Cargo Clauses elaborated by the Institute of London Insurers. In case of cargo transportation to the other countries, in order to avoid problems with foreign partners the ICC terms are used. Miracle movers, Professional office movers, among others, transport cargos besides the Canada borders. That is why they work only with the most reliable insurance companies.
Types of insurance agreements differ by insured risks:
- “all risks”: insurer bears responsibility for losses caused by cargo damage or full or partial cargo loss, which took place by any cause, except causes stipulated in rules of the insurance company;
- ” with particular average”: the insurance company bears responsibility and undertakes to cover losses caused by cargo damage or full or partial cargo loss, which took place as a result of natural hazard or vehicles crash, as well as in consequence of ship in missing. Some companies, including miracle movers, Toronto movers include in such agreement risk of full or entire cargo theft.
- “free of particular average “: the insurer undertakes the responsibility for losses as a result of full or partial cargo loss caused by natural hazard or vehicles crash, as well as for losses in consequence of ship in missing.
Beside the aforesaid main agreements types insurance companies may conclude agreements of insurance of the allied risks, for example damages, which may appear when during cargo transportation goods cost increases or they are not delivered at all due to the political or other events. However the insurance premium in case of such agreements is rather high. But in case when clients of miracle movers, Corporate moves wish to bear such expenses, company concludes such agreements in their name.
Miracle movers, Professional office movers have experienced lawyers who have a serious approach to the insurance of the client’s cargo. Each insurance agreement, as well as the insurance company rules, contains a list of exception cases when the insurer is not liable. As a rule, to the exception cases refer risks related to:
- acts of war and their consequences;
- bad faith or gross negligence of the insured party or his representative A (violation of transportation conditions stipulated in the agreement).
The insurer also will not pay cargo shortage in case when the package has no visible damages (for example, loss of goods from container with unbroken seals).
In our next article we’ll discuss such crucial points in insurance as term of validity of the insurance agreements, factors which influence the underwriting rate, and how to obtain the insurance.