Why You Need Cargo Insurance

Ship happens. Protect yourself and your cargo by insuring against the unexpected.

What is Cargo Insurance?

Whether moving cargo around the world or around the block, a lot can happen between point A and B. Without insurance you may be more exposed than you believe. Cargo insurance protects your goods from damage, theft, fire, and a multitude of other unforeseen issues that your carrier won't protect against.

Potential Risks

It's important to consider some of the potential risks and challenges that can arise during the shipping process. For example:

  1. Accidents and Incidents: Even the most carefully planned shipments can be subject to accidents and incidents that are beyond your control. This could include anything from a traffic accident or weather-related delay to a fire or theft.
  2. Carrier Liability Caps: Carriers often limit their liability for damages or losses, which can be significantly below the actual value of your shipment. This means that even if your carrier accepts liability, you may still not receive full compensation for your losses.
  3. Acts of God: While carriers are responsible for losses that occur due to their negligence, they are not liable for losses that result from "acts of God," such as earthquakes, hurricanes, or other natural disasters. This means that even if your carrier is blameless in the loss of your shipment, you may still be left with a significant financial burden.
  4. Acts of War
  5. Strikes, Riots and Civil Unrest

Isn't the Carrier Responsible for Any Problems?

Cargo insurance protects your goods from damage, theft, fire, and a multitude of other unforeseen issues that your carrier won't protect againstCarriers are innocent until proven guilty and its often very difficult to pin where exactly they were at fault through the process. If it can't be proved that the carrier was a) negligent in its handling and b) in direct control/custody of the cargo, carriers will deny claims leaving you empty handed with a financial and logistical problem.

Even if your claim is approved, Carriers often cap their liability through the terms and conditions that customers agree to in the Bill of Lading. These caps vary by mode of transportation and vendor, but are generally benchmarked per package or by weight and have nothing to do with the value of the shipment. 

For example, international air carriers are usually limited to $29/kg and FedEx is typically $100 or less per package. In many cases, this will be substantially below the value of your goods.

Cargo Insurance is Undeniably Important

Cargo insurance can provide coverage for shipments from warehouse to warehouse or door-to-door, depending on the specific terms and conditions of the policy. This means that the cargo will be insured throughout its entire journey, from the moment it leaves the initial warehouse until it arrives at the final destination. 

Don't take any chances so protect your shipments and your business with cargo insurance. You can customize your policy to include coverage for specific risks or hazards. Mercury can assist you so contact us today.

Why you need cargo insurance

Pro Tip

There are hazards at every step of the shipping process and cargo insurance is an excellent way to protect your goods. Remember to evaluate the contents of your shipment to see if additional coverage is right for you.

Customs Documentation, Shipping & Logistics - General

Declared Value vs. Shipping Insurance: What’s the Difference?

November 30, 2023

Discover the real differences between Declared Value and Shipping Insurance. Learn why it matters for your shipments' safety and your wallet. Get practical insights on when to choose declared value or go for shipping insurance to protect your valuable items.

Simplifying Shipping Since 1984

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