Tons of goods are moved around the world every day. Whatever their mode of transport (road, rail, sea, river or air), goods are exposed to numerous risks, including accident, fire, strike, theft, etc.
These risks can be covered by a transit insurance policy. Therefore, it is crucial to have your goods well-insured with transit insurance.
What Is Transit Insurance?
Transit insurance is a significant part of the logistics industry. It provides coverage for goods while they are in transit, thereby protecting them against potential losses that may occur during transportation. Your company may suffer financial loss if anything happens to the goods in transit. With transit insurance, shippers protect their goods against transport risks.
In a transit insurance, the goods are generally insured, but there are cases of exemption and its liability remains limited. Thus, in the event of a disaster, the compensation is restricted as per the policy’s terms and conditions.
Hence, when opting for a transit insurance policy, always learn about the inclusions, exclusions and policy terms and conditions.
5 Compelling Reasons Why Transit Insurance is Necessary for Every Shipper
Despite all the precautions you take, goods can get damaged, destroyed or lost during transit. Transit insurance minimises financial risks in such cases by providing compensation in case something goes wrong.
Here are some top reasons why a transit insurance policy should be bought by every shipper:
● Wide Coverage
A transit insurance policy offers all-around coverage for various risks starting from theft, fire, collision, and accident to natural and man-made disasters.
This ensures that goods are safeguarded throughout their journey, providing peace of mind to businesses and individuals alike.
● Protection for Various Modes of Transport
Having transit insurance coverage means that regardless of whether you transport goods by rail, air, sea, or road, your goods will be insured.
The coverage of different types of transport gives shippers peace of mind and financial protection so that they can concentrate on their business instead of worrying about unforeseen events.
● Comprehensive Coverage and Protection
Transit insurance provides coverage to the insured in case goods get lost or damaged. You will be reimbursed for the loss incurred. This is beneficial especially, for shippers who deal with expensive or high-value goods.
Hence, transit coverage can minimise the financial risk with regard to the value of goods.
● Tailored to Your Needs
Every transport is exposed to a different risk; hence, shippers can customise their transit insurance individually.
This flexibility allows them to tailor coverage to match the specific needs of each shipment, ensuring optimal protection.
● Affordable Rates
With the increasing competition, every insurer tries to offer insurance at the most competitive rates possible. Consequently, obtaining transit insurance has become more accessible and cost-effective.
Highlighting Features of a Transit Insurance Policy
Buying transit cover insurance comes with countless advantages. In addition to these major benefits, some other fantastic features of this insurance are:
- Flexibility
- The facility to purchase it online
- Financial security
- Global coverage
- Multiple choices, etc.
Types of Transit Insurance
Single Transit Insurance
It is the simplest type of transit insurance which is specifically made for shippers who do not send shipments frequently.
The coverage provided by single transit insurance is only for a single shipment. When the goods arrive at the destination, the policy terminates automatically.
Open Transit Insurance
This policy is suitable for shippers who send shipments regularly. Generally, the policy duration is around 1 year.
Third-Party Carrier
Third-party carrier insurance is beneficial only when the goods are transported by a third party. It is usually purchased by businesses that use shipping services.
Personalised Transit Insurance
This is considered to be the favourite of shippers as sometimes the coverage offered by the policy may not be as per the shippers requirement. So, they opt for this type of policy which can be customised as per their convenience.
How to Buy Transit Insurance Online?
- Visit the website of your chosen insurance company and search for the SME insurance section. Look for transit insurance or marine insurance
- After selecting the transit insurance option, you will get a form that you will have to fill out and submit.
- By entering the details asked in the form, the insurance provider may contact you for further details. You can purchase a plan that fits your needs.
- If you find a suitable plan, you can buy the policy by paying the premium amount.
It is suggested to first read the terms and conditions of the policy, the coverage offered, premium cost, duration, etc., before making a purchase decision.
Conclusion
Opting for transit insurance coverage helps limit the financial consequences of damage that can occur to your goods/shipment. Whether it is a high-value consignment requiring extensive coverage or a regular shipment needing basic protection, transit insurance policies can be adapted accordingly to provide the most appropriate level of security.
Comments are closed.