Cargo Insurance

Longmont, CO Cargo Insurance

Red truck moving on a vibrant highwayIt is important to note that while carriers are legally required to obtain freight liability insurance, it is usually a very low amount of coverage. That is why DC Insurers Mountain: Longmont highly recommends cargo, or freight, insurance to protect goods from storage through transit until they reach the buyer. Cargo insurance covers a multitude of events from natural disasters to accidents so shippers are insured against loss, damage and theft of goods.

Types of Cargo Insurance

  • Land Cargo Insurance: For domestic transit via trucks and other land-based transportation methods such as road, rail, registered post parcel and courier.
  • Marine Cargo Insurance: When transit is either by sea or air, usually for international transportation, this insurance covers losses due to loading or unloading errors, severe weather occurrences, etc.
  • Open Cover Cargo Policies: If your business will be making one shipment, a renewable policy for a specific value will be drawn up and will expire after reaching the destination. However, if there will be an unknown amount of shipments within a certain timeframe, a permanent policy will be required.
  • Contingency Insurance Policy: This type of policy is intended for circumstances where the buyer is responsible for insuring the cargo, not the seller. For extra protection against potential liability, sellers are still advised to obtain coverage, in the form of contingency insurance, at a low premium.
  • All Risk Coverage: This extensive protection covers damages due to improper packing, infestation, abandonment, and rejection at customs to name just a few included aspects.
  • General Average Coverage: This is the minimum level of marine cargo insurance, only covering partial loss and requiring other cargo-holding owners to also pay compensation.
  • Free From Particular Average Coverage: Protection from loss due to particular situations in marine transit such as collision, sinking, fire, theft and non-delivery.
  • Warehouse to Warehouse Coverage: This type of coverage comes into play when compensation is due for damages that occur from the time cargo is unloaded from a ship to when it arrives at the buyer’s warehouse.

If your business involves shipping, it is essential to document the value of each cargo load and work with an insurance agent to understand your policy’s coverage and guarantee your protection. The experienced team at DC Insurers Mountain: Longmont would be happy to discuss the necessary cargo insurance for your particular situation!


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