Goods in Transit insurance covers cargo if lost or damaged due to transportation from one place to another. Most goods are transported through sea, air, railways, or land, and transit insurance can cover business or personal goods sent locally or shipped internationally.
The carrier is only responsible for your goods if they are found to have been negligent in Transit, but it’s not the sole reason how you can damage your goods. Hail storms, theft, accidents are many reasons you cannot hold the carrier liable. However, these incidents will hold you bound to bear the liability unless you have an appropriate good in transit insurance that covers your goods in case of any mishap.
The transit insurance plan has several advantages for your business. Here we discuss some basics that might make you rethink your decision regarding choosing good transit insurance.
- Transit insurance is generally customizable, and so it’s suitable for all businesses.
- When the goods are damaged in Transit, the business suffers huge losses. The coverage provides strong financial support to the business and helps them to keep running despite incurring heavy losses.
- Even when the goods are shipped internationally, the coverage meets the country’s requirements where the goods are heading.
- Every possible loss is covered under the goods transit insurance. As a result, the business can maintain profitability even when the goods are damaged due to unforeseen factors. This feature helps them to maintain their share value in the market.
Now the question arises, which group of businesspersons or investors should consider taking the transit insurance for their business?
The following types of parties can purchase the policy:
- Custom house agents
- Custom House Agents
- Importers and Exporter of goods
- Manufacturers of these goods
So if you fall into any of these categories, you should not think twice before buying the insurance scheme for your business, here we discuss some of the different types of policies offered in multiple variants:
- Open Policy:
The policy covers several goods in Transit that occur within one year. This policy is for the business that transports their goods now and then and can cover multiple trips without buying different policies for different transports.
- Single Transit Policy:
This policy covers only goods transported in one particular journey. Therefore, it is suitable for businesses that do not transport their goods that frequently.
- Overnight Vehicles Insurance:
When the transported goods need to be stored overnight, this policy covers any damages that arise to goods due to overnight storage.
- Customized Policy:
This policy works the best for businesses that need to customize their policy according to their businesses.
- Own Vehicle Cover:
If your vehicle is used to transport goods, then the cover could insure the goods against any possible damage.
- Carrier’s Cover:
When the goods are transferred through a party carrier, he will guarantee risks of damage to the goods. This policy covers the damages when a third-person carrier transports the goods.
Factors affecting the premium of the good in Transit:
- The method of transportation of goods, i.e., land, water, or air.
- The type of the goods, whether they are household or transported goods.
- The distance covered by the fleet, how far the cargo needs to travel.
- The insurance type, whether it’s once time or on an annual basis.
They determine the amount you need to pay to cover your goods in Transit. When you select an annual transit insurance policy, you generally save between 25-40% compared to a single cover policy.
Your goods are your asset, and you need to make sure that they are safely delivered to the location they are meant to go. If your business needs to use seaways for transportation, consider taking marine transit insurance for the goods.
The policy is easier to purchase at low rates and necessary addition to the Transit of your goods.