Freight Insurance

Freight insurance is coverage for goods in transit. It compensates shippers or consignees for loss or damage during transportation. Operations include maritime shipping, air freight, rail transport, and trucking. Policies typically specify coverage terms that outline compensation for damages under predefined conditions.

Freight insurance applies to commercial goods, raw materials, and finished products. Common examples include electronics, machinery, agricultural products, and textiles. Coverage varies by policy, detailing reimbursable events like theft, accidents, natural disasters, and handling damage.

Types of freight insurance include All-Risk Insurance and Free of Particular Average insurance. All-Risk Insurance covers most risks except those explicitly excluded; exclusions often involve acts of war, negligence, and improper packaging. Free of Particular Average covers only major losses but not minor damages.

Policies should specify coverage limits, deductibles, and claim procedures to avoid disputes. Ensuring proper documentation, like bills of lading and commercial invoices, is crucial for claim processing. These documents provide essential evidence for proving ownership and the value of goods.

Choosing the right freight insurance requires understanding the inherent risks of different transportation modes. Maritime shipping might encounter piracy, while air freight faces potential delays and ground handling issues. Rail and truck transport are susceptible to derailments and road accidents. Insights into these specific risks aid in selecting appropriate policies.