Freight Insurance: What You Need to Know
Freight insurance is a policy designed to protect goods during their movement, whether by road, sea, air or rail. This type of insurance is essential for companies, carriers and owners who wish to cover themselves against the most common risks associated with the transport of cargo.
Who should take out Freight Insurance?
Freight insurance is useful for different actors in the logistics sector. Here we show you who should consider taking out this policy:
- Transport and logistics companies: Any company that moves goods must protect itself against damage or loss.
- Owners of goods: Exporters, importers and distributors who need to insure their products during transport.
- Self-employed carriers: Those transporting goods on behalf of others must also have an insurance policy.
- Any party with an interest in the safety of the goods: In general, any actor involved in the preservation and delivery of the goods can be a policyholder of this insurance.
Basic Coverage for Freight Insurance
The most common guarantees in this type of policy include:
- Damage due to accidents involving the means of transport: Includes collisions, overturns or derailments during the journey.
- Fire, lightning or explosion: Protects against damage arising from these claims.
- Theft: Optional cover against theft of the goods during transport.
- Breakage and damage during loading or unloading: Particularly relevant for fragile goods.
- Damage due to atmospheric phenomena: Covers damage caused by rain, wind, hail, snow, among others.
- Total or partial loss of the goods: Any loss covered by the policy, whether partial or total.
Recruitment Modalities
There are different types of policies, depending on the needs of the company or the owner of the goods. The most common types are:
- Policy per trip: Ideal for those who need to secure only one specific transport.
- Annual floating policy: It covers all shipments during the year, providing continuous coverage.
- Fixed premium policy: For companies with a regular transport volume, guaranteeing a constant rate.
Types of Cargo Insurance
There are different types of transport insurance to suit different needs. The most common are:
- Insurance against damage to goods: Covers material damage suffered by the cargo, regardless of the carrier's liability.
- Cargo liability insurance: Protects against damage that the goods may cause to third parties during transport.
- CMR insurance: Specific for international road transport, adapted to the international convention on the carriage of goods.
Transport Insurance Indemnity Limits
Compensation limits vary according to the type of transport and the area of coverage. Here are the approximate limits:
- National transport (LOTT): Around €6 per kilo of damaged or lost goods.
- International transport (CMR): A limit of approximately €10 per kilo, according to the Special Drawing Right (SDR).
What does Freight Insurance cover?
Freight insurance covers a wide range of risks that can occur during the movement of goods. It is essential to understand what exactly is included in the policy in order to be protected in case of any inconvenience.
Protect your goods with transport insurance
Take out your goods transport insurance now and ensure the safe transport of your goods, avoiding risks and losses.
What does Marine, Land or Air Transport Insurance cover?
There are differences between transport insurance policies depending on the means of transport. Here are the key aspects:
- Land transport insurance: Ideal for goods being transported by road. Covers damage sustained during the journey, from accidents to extreme weather conditions.
- Maritime transport insurance: Specific for goods travelling by sea. Covers water damage, spills or accidents in ports.
- Air transport insurance: Protects cargo during air transport, covering possible damage caused by accidents or problems at the airfield.
Factors Influencing the Price of Transport Insurance
The cost of transport insurance can vary depending on a number of factors. These include:
- Value, type and nature of the goods: High-value or more sensitive goods, such as electronics or art, may have a higher premium.
- Journey and means of transport: International shipments usually cost more than domestic shipments. In addition, air or sea transport may influence the rate.
- Frequency and volume of shipments: Companies that ship regularly can benefit from more competitive rates.
- Security measures and packaging: Appropriate packaging and additional security measures can reduce the cost of the premium.
- Accident history: A clean claims record can lead to discounted insurance rates.
Common Requirements and Exclusions
When taking out freight insurance, it is important to consider the following requirements and exclusions:
- Correctly declare the value and type of goods: Accurate information about what is being transported is essential to ensure adequate coverage.
- Comply with packaging and handling standards: Inadequate packaging may invalidate coverage in case of damage.
- Usual exclusions: Some dangerous goods are not covered if not properly declared. Delays that do not involve physical damage to cargo, or damage resulting from acts of war or terrorism are also not covered.
Recommendations when taking out Freight Transport Insurance
If you are thinking of taking out freight insurance, follow these recommendations:
- Compare coverage and limits between insurers.
- Check the particular conditions and exclusions of each policy.
- Consult with specialised brokers if you transport high-value or special goods.
Freight insurance is essential to protect your business against unexpected risks and ensure continuity of business operations. Frequently Asked Questions about Freight Insurance
What does freight insurance cover?
Goods transport insurance covers damage caused by accidents, theft, fire, atmospheric phenomena, among other risks that may affect the cargo during transport.
What is the difference between land, sea and air transport insurance?
The main difference lies in the means of transport: land insurance covers road transport, marine insurance covers transport by sea and air insurance covers goods travelling by air.
How much does international transport insurance cost?
The price varies depending on the value of the goods, the type of transport and the destination. It is advisable to contact a specialised consultant to get a quote tailored to your needs.