What you didn’t know about transport damage
27 November 2019
Too many businesses are blindsided by the harsh reality: transport damage is not insured under a standard policy. It goes without saying that this can have significant implications. Did you know that you may be liable for damages that you weren’t directly responsible for, such as capsizing or an onboard fire? Transport damage is only covered if you are insured against it, which is why we are happy to take the time to explain the why and how of transport insurance.
Risks of damage
Each and every transport entails the risk of damages. If you haven’t arranged transport insurance, these expenses are rarely covered. In these situations, it is irrelevant which party caused the damage. These damages can quickly add up to an overwhelming financial impact for your business.
Costs incurred by events such as cargo theft, fire or water damage are often high, let alone a sunken ship or crashed aircraft. Some businesses have even gone bankrupt as a result. Transport insurance covers the risks of transport damage. You are then also insured for correct processing in the event damage so that your relationship with clients and suppliers aren’t subject to unnecessary pressure.
Have you incurred damages? It is always important to record irregularities and findings, such as water damage, on the consignment note (CMR) so that you aren’t left searching for proof after the fact.
Who arranges the transport insurance?
Transport insurance can be arranged in various ways, such as forming agreements with your supplier in the Incoterm formed. Do ensure that you explicitly document who is responsible for arranging the insurance. While insurance is frequently referenced in the Incoterms, insurance of goods isn’t always a given.
It is also possible to independently arrange transport insurance. This can be done for each individual shipment. If you are regularly shipping goods, however, ongoing insurance is most likely the better option and will save you time and expenses.
Lastly, you can always arrange transport insurance directly with us. As a freight forwarding agent, we are affiliated with the FENEX and can provide custom insurance for your transport upon request.
We are happy to advise you on which transport insurance policy is best suited to your situation. We work together with a specialised intermediary. Please feel free to contact us for more information and advice.
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