5 Reasons Why Cargo Insurance is Inevitable

Do you know that your cargo is prone to risk of damage or loss during transit? Have you taken any precautions to address this possibility? 

Cargo insurance has become a necessity over the years to defend against the inevitable damages or losses that occur due to natural or unnatural reasons during the transit of goods. It protects you from financial loss and covers all kinds of natural and unnatural causes like catastrophes, vehicle accidents, cargo desertion, customs rejection, acts of war, and piracy.

Acts as a shield against Unforeseen disasters.

By law, carriers are not held responsible for any kind of natural disaster. Catastrophes like shipwrecks, storms, or pirate attacks may cause monetary losses worth millions of dollars. Having sound cargo insurance might be an aid for you in such a vulnerable state.

Deal with the issues connected to cargo damages.

Cargo damages are another unavoidable issue in shipping payloads. Any defect due to improper packing, insufficient ventilation, inferior quality containers, etc., may lead to damages that cannot be quickly dealt with, wherein comes the importance of cargo insurance. Also, make sure to choose the best cargo in UAE.

Deals with Limited carrier liability

Even if the carrier is legally liable, you may still not obtain the exact value of your shipments. Carriers are responsible only for up to a minimum amount of insurance coverage. Freight carriers are liable for up to $500 per package, and Air freight carriers are accountable for up to $ 24 per kilogram. Therefore make sure to take your freight insurance if you do not want to lose a substantial portion of your money on any loss or impairment of your cargo.

Contractual requirement

In sales contracts, cargo insurance is often an obligation to protect buyers’ interests. Failing to follow it would not only result in an economic loss on any cargo deterioration but also leads to legal crises if the assertions in the contract are compromised.

Provides a turnaround time

By purchasing insurance, your cargo becomes subject to a binding agreement that involves a specific turnaround time, relieving you of the difficulties of dealing with delayed shipments and cargo loss that could otherwise take months or even years from your valuable time. There is n number of cargo companies in Dubai to choose from, so make wise choices.