The Differences Between Carrier and Third-Party Insurance
In today’s globalized world, shipping goods across borders is more common than ever. However, with this convenience comes significant risks like cargo damage, theft, or loss during transit. While many shippers rely on carriers’ liability coverage, it often falls short of covering the full value of the shipment. This is where cargo insurance online comes into play. In this blog, we’ll explore why cargo insurance online is essential for businesses and how it can offer peace of mind by providing comprehensive protection for your goods during transportation.
What is Cargo Insurance Online?
Cargo Insurance Online is a digital service that allows businesses, shippers, and individuals to secure coverage for their goods during transit, instantly and conveniently. Rather than dealing with traditional methods, which can be time-consuming and require physical documentation, Cargo Insurance Online streamlines the process, making it fast, efficient, and easy to manage from anywhere in the world.
This form of insurance covers potential risks such as loss, damage, or theft of your goods during transportation via sea, air, or land. It ensures that you are fully compensated in the unfortunate event of such occurrences, safeguarding your investment and keeping your supply chain intact.
Why Relying on Carrier Liability Isn’t Enough
Many shippers assume that if anything goes wrong during shipping, the carrier will fully cover the loss. Unfortunately, this is not the case. Carriers provide limited liability, and the amount they are responsible for is usually significantly lower than the actual value of the shipment.
For example:
Air Freight carriers under the Montreal Convention are only liable for around USD 26.22 per kilogram of damaged or lost cargo.
Sea Freight under Hague-Visby Rules limits liability to SDR 666.67 per package, which is often a fraction of the total cargo value.
Road Transport under CMR Convention has even lower limits, around SDR 8.33 per kilogram.
In all these cases, the compensation from the carrier is unlikely to fully cover the value of high-value or large shipments. That’s where Cargo Insurance Online comes in to bridge the gap.
Register with us here for immediate access to quick and reliable cargo insurance.
Talk to us if you have any questions here.