Transportation insurance is used when transporting goods from one place to another, often internationally. Because the nature of this insurance requires the cooperation of different states or countries, it is very difficult to regulate and standardize. Although policies vary among different countries, insurance companies and shipping types, basic transport insurance can be classified into a few categories.
In general, the transport of cargo made by land will be secured with some truck transport insurance. These types of policies offer coverage against theft while the truck is unattended, against damage due to crashes and other contingencies.
International transport is usually done by sea, and sometimes by air. These types of shipments are insured by insurance for maritime transport, which offers coverage against damage caused to the loading or unloading of the ship, weather damage, piracy and other contingencies.
Open Position Policies
Within the broad categories of land and sea insurance, there are different types of policies. One of the most common is the so-called open position policy or an open policy. These policies ensure the declared value of the transport or provide coverage for a period of time, or both, and do not specify the type of cargo, ship or destination. Policies are frequently used by exporters who have large volumes of operations.
Sometimes it is necessary to obtain an insurance policy with more specific terms than the one provided with an open policy. A travel policy is designed to protect certain merchandise transported during a specific trip from a specific origin to a specific destination. Once the trip is complete, the policy expires and a new policy must be issued for subsequent trips.
Policies for contingencies in shipments
Policies for contingencies in shipments serve as secondary insurance for situations where the main insurance is not activated. For example, an exporter can send merchandise to a customer of yours, an importer, who decides to accept responsibility for the goods until they arrive. For any reason, you can refuse delivery or the merchandise may be damaged during the trip, refusing to fulfil your responsibility. A contingency policy will pay for this type of loss, where the responsible party refuses to fulfil its responsibility and holds you accountable instead. Contingency policies can also be activated if the claim made by the main insurance is denied.