Contingent Cargo Insurance For Freight Brokers

Cargo insurance can protect you when a carriers shipment is damaged or doesn't arrive. Even though you are not actually shipping the cargo yourself, you can still be found liable in the case of an mishap. Protect your business and livelihood with cargo insurance for freight brokers.

Protect Your Financial Assets During Shipments With Cargo Coverage

Learn About Cargo Insurance For Freight Brokers!

Freight brokers, like any business, have a lot on their plate. One of the most important things they need to worry about is cargo insurance for shipments. 

Cargo insurance is a type of commercial transportation insurance that covers goods in transit. The policyholder purchases coverage to protect against damages, loss, and theft during the transport process.

Cargo insurance has many uses: It can be used for any product that needs to be shipped across state lines or internationally, such as electronics, retail goods, or food products. This applies not only to large companies but also small businesses who need help transporting their inventory from point A to point B with protection in case of an incident occurring.

If you are using cargo insurance for your business, it's important to know what you're covered for and how much protection you have before putting your goods in transit. Here are some of the most common types of coverage available with cargo insurance:

• Loss Of Use Coverage: Average cargo insurance policy will reimburse the insured party for any additional expenses that are incurred if goods are damaged or destroyed in transit. For example, if you have a shipment of high-end computers being shipped from Chicago to Las Vegas and the shipment is delayed because of damage, you can be reimbursed for "loss of use" which means you no longer have the use of that product until it is finally delivered. Since this reimbursement can vary greatly, it's important to understand how much loss of use coverage you are entitled to before signing your policy agreement.

Average cargo insurance policy will reimburse the insured party for any additional expenses that are incurred if goods are damaged or destroyed in transit. Agreement.

• Contingent Cargo Insurance: Protect yourself from claims if a fault from cargo loss or damage is found to be your fault. You can protect your finances from a potential loss by obtaining contingent cargo insurance.

It's important for everyone who ships goods to understand how their insurance plan works and the extent of coverage they have. Depending on your company's type of business and what your clients ship, cargo insurance can help protect your investment should something go wrong and the blame fall on you.

If an accident falls on you and you have to file a claim, the insurance company will cover costs such as the cost of repair or replacement.

Why Freight Brokers Need Cargo Insurance

Shipping cargo is not an easy undertaking. It's a comprehensive journey that takes the utmost care to make sure it arrives the same way it was shipped. Unfortunately, there are many things that can happen along the way which damage the cargo--weather changes, accidents on the road or rail, lost items by third-party carriers...the list goes on and most of these things cannot be predicted beforehand. That's why freight brokers need to protect themselves and carriers with cargo insurance before sending off the cargo for shipping!

Freight brokers know this all too well--they're often at risk when their clients request shipments without coverage because they want to save money on premiums. But what happens if something does go wrong? The broker will have to pay out of pocket for repairs or replacement costs that could be a lot higher than the original contract. That's why it's always a good idea to have an insurance plan in place before beginning any shipping journey. 

The biggest piece that you should be aware of is that freight brokers are not legally required by law to carry motor truck cargo insurance. It’s a recommendation, but the reason that all freight brokers should consider getting a policy is because they can be held liable for shipments that don't arrive.

Main Reason To Obtain Insurance

Cost & Coverages For Freight Brokers

Cargo insurance for freight brokers can be complicated and confusing. There are many variables to consider, such as the type of cargo being shipped, whether it is hazardous or not, and if it is domestic or international. 

Factors included are:

>Cargo insurance protects shippers and freight brokers against loss or damage during transit.

>Hazmat coverage/insurance is for goods that are hazardous in nature.

>Dangerous goods are any objects or substances whose inherent properties may endanger people, property or the environment if they are not handled properly during transport - whether by rail, road, water or air. All dangerous goods have an influence on the premium price for cargo insurance for freight brokers.

To find out how much cargo insurance will cost for your freight brokering operation, we need to ask a few questions, some of which include:

1) What kind of goods are you shipping? 

2) Is your shipment hazardous?

3) Are you sending domestic shipments or international ones?

4) How long have you been in business?

and more…

Overall the calculation of premium price is based on how much risk there is involved with your operation. 

Contact Strong Insurance For Cargo Insurance

Most, if not all, freight broker operations will want to acquire cargo insurance. To figure out your exact needs, talk with a licensed and experienced insurance agent. 

Quick tip: Contingent Cargo insurance coverage is the most common type of coverage for a freight broker.

Cargo insurance isn't a requirement for freight brokers, but it can financially protect you in the event of an accident. Strong Insurance is a leader in helping trucking and freight broker operations acquire cargo insurance at better rates. We have the expertise to provide quality coverage for all your needs. Call our licensed agents at 308-430-1953 or contact us online today! They're waiting to help you find the best coverage tailored for your operation.

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