Cargo Insurance
In international logistics, every shipment is exposed to potential risks — ranging from mechanical damage to theft or total loss of goods. Such incidents can lead to significant financial losses, delivery delays, and even damage to a company’s reputation. That’s why cargo insurance is essential for ensuring the reliable protection of goods during transportation.
Why Cargo Insurance is Important
Cargo transportation insurance minimizes financial losses in case of damage or loss, guaranteeing compensation for incurred damages. Additionally, international agreements and legal regulations require coverage, increasing the accountability of carriers and protecting the interests of all transportation participants.
Having insurance also fosters trust between suppliers, carriers, and recipients, as it ensures the safety of goods throughout the transportation process.
Types of Cargo Insurance
There are several types of financial protection available:
- Comprehensive Insurance: Covers all risks of loss or damage, regardless of the cause.
- Partial Insurance: Provides compensation in specific cases, such as accidents or natural disasters.
- Force Majeure Insurance: Covers risks associated with unforeseen events like fires, natural disasters, or accidents.
- Specialized Insurance: Designed for particular cargo types, such as hazardous, valuable, or perishable goods, taking into account their specific risks.
Thanks to cargo insurance services, clients receive maximum protection for their goods. At the same time, ETS fully insures clients’ property to safeguard against theft or damage. This service is already included in the delivery cost.
What Cargo Insurance Covers
- Loss or damage during transportation: Compensation for physical loss or damage to goods.
- Theft, robbery, or fraud: Protection against illegal actions by third parties leading to cargo loss.
- Liability to third parties: Coverage for damages caused to third-party property during transportation.
- Shortages or damage due to loading errors: Compensation for damages resulting from improper loading or placement of goods.
How Insurance Costs Are Calculated
The cost calculation depends on several important factors. The primary factor is the type of cargo, as its characteristics — such as value, fragility, or hazardous nature — directly affect cargo insurance rates. The insured sum is also considered, which is usually determined as a percentage of the total cargo value.
The transportation route and mode play a crucial role, as different logistical routes and delivery methods involve varying levels of risk. Additionally, insurance conditions and cargo handling can significantly impact the final cost of coverage, as each extra stage of cargo processing increases potential risks.
How to Arrange Cargo Insurance
Before securing insurance, ETS logistics specialists follow these steps:
- Assess cargo value and transportation risks. Determine the actual cargo value and consider all delivery nuances.
- Prepare necessary documentation. Draw up contracts, invoices, and a detailed cargo description.
- Sign an agreement. Officially confirm insurance terms between the client and the company.
- Monitor compliance with the insurance agreement. Oversee the fulfillment of contract terms throughout the transportation process.
Guarantees & Responsibilities of ETS
ETS provides comprehensive cargo insurance services for international transportation, ensuring full protection for clients’ goods.
We guarantee legal coverage and prompt compensation payouts in the event of an insured incident.
Our responsibility spans all transportation stages, offering clients peace of mind and confidence in the safety of their goods.
Useful Information
Frequently Asked Question (FAQ)
In most cases, it is optional, but ETS makes it mandatory for added security.
It covers loss, damage, theft, robbery, force majeure, and other unforeseen circumstances.
The price depends on the cargo type, route, insured sum, which is a percentage of the total cargo value.
Yes, specialized coverage is available for high-value, fragile, or hazardous goods.
Document the damage, prepare a report, notify the logistics provider, and submit a claim for compensation.
Typically, a transportation contract, invoice, cargo description, and shipping route details are needed.
After reviewing the claim and verifying circumstances, the insurance company pays compensation per the contract.
Yes, if specified in the policy, losses due to storms, floods, hurricanes, etc., are covered.
Yes, you can arrange insurance for a particular segment of the transport route.
Submit a written claim with supporting documents proving the damage or loss of goods.
Yes, it is usually calculated as a percentage of the cargo’s value.
Yes, insurance applies to all transport modes, including multimodal shipments.
In some cases, changes can be made upon agreement with the insurance provider.
Yes, it covers international routes, including maritime, air, and land transportation.
Insurance can be arranged within a few hours to one business day, depending on the complexity of the contract.