Why is Transport Insurance Necessary?

If we talk about transport, then it means that these businesses rely mostly on the delivery of goods. And during transporting of the goods, lots of things can go wrong and that’s where transport insurance comes into play. Say, for example, if your company is outsourcing the transportation of the products to the professional freight forwarder, and you believe that the transport company is responsible for any damage. However, in case of any unfortunate event, if any problem occurs while transporting the goods, then you can’t blame it on the transport company with any written proof. That is when the transport insurance can make sense to your claims. 

While using the logistic companies to transport the goods, you need to be aware of the issues that you can face while transporting them. These issues can be either accident, theft, damage to the goods or loss of goods. These all must be mentioned clearly on the agreement signed by you with the logistic company, and it also will include information about the transport insurance cover.

What is Transport Insurance?

Transport insurance gives protection against any accident if anything goes wrong in the transit. This insurance will make sure that you get the full compensation of the damage done during the unfortunate incident depending upon the sales invoice. If there is no invoice, then the amount will be determined according to the market value. Even the cost of transporting will be reimbursed in this insurance cover. Check out semi truck insurance quote

The level of the transport insurance premium depends upon the following factors:

  • Destination
  • Selected Mode of Transport
  • Value of the Goods

What Are the Risks That Are Protected with The Insurance Cover?

Do you think about which all things transport insurance can protect you and your business from? However, you don’t have to worry as these things are listed below:

  • Damage

Damage includes scratched, wet or dented goods during the transit. The logistic company is responsible for making sure that the goods are packed perfectly well. When you receive the consignment, and it is damaged or is inadequately packed then it should be recorded on the billing of transport agreement. If the consignment received by you is damaged, then the logistic company is liable for the damage, and you can ask for the claim. During that time, if there is the insurance cover, then only the logistic company can use it to pay for the claim.

  • Stolen or Lost Goods

Transport insurance also covers the theft and loss of the consignment. However, you have to prove that the loss or theft has occurred during the transportation of the goods. To prove the loss, you need to check the invoice where the list of the goods and the quantity of each good is mentioned that were there in the transit vehicle. However, to prove the theft, you must take the help of CCTV footage, and you must report the incident of theft to the police. If you have no proof of theft, then that good comes under the loss of consignment. It is the responsibility of the transit company to compensate for the affected party.

  • Delay

The insurance cover of transport also gives compensation to the affected party for the late delivery of goods. Suppose the delay has caused some financial loss or consequential damage to the consignor. The transit companies are responsible for reimbursing the cost of late delivery.

That is why the transit company needs to go to transport insurance. It is important for saving your consignment whether it is transported via road, freight or ship from the damages through the insurance. So, whether you are shipping your consignment to familiar or unfamiliar location transport insurance is worth taking.