To reach the biggest pool of customers, manufacturers often must ship their goods across oceans. When they put a product onto a ship, it encounters many potential hazards. Without the right contingent cargo coverage, manufacturers risk significant financial loss during the shipment chain. To ship with confidence, diligent business owners take a three-pronged approach.
Before manufacturers can purchase coverage, they must understand the unique risks associated with shipping goods over the sea. While no manufacturer can plan for every eventuality, the most common risks associated with shipping cargo are the following:
- Natural Disasters
- Vessel Damage
Work With the Right Provider
State law does not regulate contingent cargo coverage. Therefore, policies vary widely in what they cover. Because manufacturers aren’t insurance experts, they often cannot select the right policy without working with an experienced provider. By relying on the expertise of a knowledgeable insurer, manufacturers purchase independent cargo policies to allow them to ship without worry.
Purchase Insurance Coverage
Depending on business needs, manufacturers purchase independent coverage to protect their goods during oceanic transit. While every policy is different, many include the following types of coverage:
- International and Domestic Coverage
- Warehouse Insurance
- On-Deck Protection
- Total Loss Insurance
Instead of leaving protection of goods up to the carrier’s insurance provider, smart manufacturers opt for purchasing their own coverage. By tackling the task with a three-pronged approach, business owners get the coverage they need to ship with peace of mind.More