International transport insurance: types, coverages and how to choose the most suitable.

International transport insurance protects against loss or damage to goods during international trade, with common types including Marine (or Cargo), Carrier Liability, and Credit insurance. To choose the right policy, assess your needs and risks, then select the appropriate coverage level, such as All-Risk for comprehensive protection or Specific Perils for more limited coverage. The process involves evaluating your specific goods and shipping routes, obtaining quotes, and purchasing a policy that covers the entire transit from loading to unloading.

Types of international transport insurance

Marine/Cargo Insurance: The most common type, covering goods against physical damage during transit by sea, air, or land.

Carrier Liability Insurance: Protects you by covering the carrier's liability for damage to your goods, which is often limited by law.

Basic coverages

Named Perils Coverage: Covers only the specific risks listed in the policy, such as fire, collision, or theft. It is generally less expensive.

All-Risk Coverage: Covers virtually any damage or loss, except for specific exclusions listed in the policy (e.g., improper packaging, certain employee negligence).

Perishable Goods Coverage: Specifically designed for products sensitive to temperature changes or other factors that could cause spoilage, such as refrigerated foods.

How to choose the most suitable policy

Assess your goods: Determine the value and nature of the goods you are shipping. Are they fragile, perishable, or high-risk?

Evaluate your supply chain: Consider the entire journey, from your supplier to your customer, including transit modes and any warehousing.

Understand contractual requirements: Check if your sales contract requires you to provide insurance for your shipments.

Compare coverage options: Decide between named perils and all-risk coverage. For high-value or high-risk shipments, all-risk is often the better choice, even if more expensive.

Review exclusions and limitations: Read the fine print to understand what is and is not covered, and be mindful of carrier liability limits.

Consider additional policies: If you are dealing with an unknown supplier, a contingency policy can provide a crucial layer of protection.

Importance for imports/exports

Reduces financial risk: Protects your business from significant financial losses due to damage or theft during international transport.

Meets contractual obligations: Many international contracts require the seller to provide or be responsible for insurance.

Protects against carrier limitations: Carrier liability is often limited, leaving you exposed to the full value of your goods. Insurance bridges this gap.

Enables quicker cargo release: In cases of "General Average" (where a loss is shared by all parties on a ship), insurance can expedite the release of your cargo by guaranteeing the payment of the required security.

To know more information ask our team what kind of insurance we can offer you and the cost.