YOU ASK:

When should I buy transportation insurance?

WE ANSWER:

If your business is involved in shipping goods, you need to make sure these goods are adequately protected against any transportation perils they might be exposed to. This is when transportation insurance comes in, allowing you to choose between two different coverages depending on the type of transportation your business uses.

Forms of Transportation Insurance

If your business is specialized in transporting goods over water, you will need to purchase ocean marine insurance. It will cover any seafaring vessel and its freight, plus the legal liability of you being the cargo or the ship owner.

However, you will need a different type of transportation coverage if your commercial operations involve shipping goods on land. What you need is inland marine insurance which will protect your cargo during domestic shipments, at import and export, through bridges and tunnels, etc.

Types of Ocean Marine Insurance

  • Cargo insurance can be purchased for a single shipment or for regular shipments on an open-cargo policy basis. Cargo coverage provides protection to the shipper of goods if the cargo suffers any damage or loss.
  • Freight insurance is designed to compensate the owner of the ship for any loss of profit resulting from the goods not being delivered in the expected condition, or not being delivered at all.
  • Under Hull insurance, the physical damage to the ship or vessel is compensated for, provided that a certain deductible specified in the policy declarations is paid.
  • Protection and indemnity (P&I) insurance is a type of liability insurance for any bodily injury or property damage that the ship or vessel may cause while transporting the insured business owner's goods.

Types of Inland Marine Insurance

Here are some of the major types of inland marine insurance offered by providers:

  • Domestic goods are covered by inland marine insurance while they are in transit against potential causes-of-loss such as collision, overturn, derailment, etc. of the vehicle used for transportation.
  • Mobile property and equipment such as signs, computers, and paintings, are also covered.
  • Fixed property used in transportation, such as tunnels, bridges, docks, and other equipment can be insured by an inland marine insurance contract.
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