Categories Business

Reasons why you need to buy cargo insurance for your import and export goods

If you want to enhance your business and make money in USA then you will have to sell the products of your company or if you are involved in doing business of exporting and importing goods and products in Clearit USA, every time you do ship cargo it will increase the investment in the company. But many companies don’t pay attention to that investment and at the end they suffer from heavy losses. 

It doesn’t matter whether your company imports or export goods through air cargo or ocean cargo for doing international business, the marine cargo insurance will help you in covering the losses if any damage happens in between the point of origin from where the cargo has been taken to the final destination where it has to reach.

Many of you think that not taking cargo insurance can save you little money but that is not actually true because of following reasons: 

  1. Reduced exposure to financial losses: If you are exporting the goods but at the time of shipment you don’t paid for it or suppose if you have paid all the expenses while importing it then you are going to face severe financial loss if your goods get damaged or lost at the time of transmission. 
  2. General average – Expedite the release of your cargo: General average is a rule that is followed internationally if any kind of accident happens. Everyone who is involved in it will share the loss equally. For this, you may have to post a bond of deposit cash so that you can release your cargo but if you have the insurance then you don’t have to worry as it will be the responsibility of insurance companies to pay the expenses for releasing the cargo.
  3. Contractual requirement: Your sales contract may compel you to take a legal duty to protect buyer’s interest by providing ocean cargo insurance and if you fail to do so, it can lead to loss in sales and can also cause legal problems. 
  4. Coverage for limited carrier liability: By law, if any loss occurs due to some common causes then carriers are not responsible for it and even if they are liable to any loss then it is limited by the contract or by law. More often you can recover some cents only from the carrier.
  5. Have more control over insuring terms: Make sure the insurance you have purchased and the insuring terms and the limit that have been provided by the insurer on each shipment should be adequate enough to meet all your needs.