Introduction When you're shipping cargo, you need to make sure that you're adequately covered in case of an accident or loss. That...
Introduction
When you're shipping cargo, you need to make sure that you're adequately covered in case of an accident or loss. That's where contingent cargo insurance comes in. But what is contingent cargo insurance, and how does it differ from general liability insurance?
Freight broker contingent cargo insurance is a specific type of insurance that covers goods in transit. It kicks in when the goods are lost, damaged, or stolen, and it helps to financially protect the freight broker in case of an incident.
General liability insurance, on the other hand, is a broad type of coverage that protects businesses from a variety of risks, including property damage, personal injury, and libel or slander. It typically doesn't cover goods in transit, so it's not the best option for businesses that ship cargo on a regular basis.
In short, freight broker contingent cargo insurance is designed to specifically protect goods in transit, while general liability insurance offers broad protection against a variety of risks.
What Is Contingent Cargo Insurance?
You might be wondering, what is contingent cargo insurance? Well, it's a type of insurance that protects your shipment in the event that the carrier's insurance doesn't cover the full value of your cargo.
Think of it this way: let's say you're shipping a load of valuable art pieces from one gallery to another. The carrier you're using has a general liability policy that covers up to $50,000 per shipment. But the value of your shipment is $75,000. In this case, you would want to have contingent cargo insurance to make sure that your entire shipment is covered.
Contingent cargo insurance is a great way to protect yourself and your business in the event of an accident or damage to your shipment. It's an extra layer of protection that can give you peace of mind knowing that your cargo is fully covered.
What Is the Difference Between Freight Broker Contingent Cargo Insurance and General Liability?
You're probably wondering what the difference is between freight broker contingent cargo insurance and general liability. Well, let's break it down.
Freight broker contingent cargo insurance protects the cargo against loss or damage while it's in transit. This type of insurance is usually required by the shipper and is often included in the contract between the broker and the shipper.
General liability, on the other hand, protects the freight broker against claims for bodily injury or property damage that might occur during the course of business. This type of insurance is not required by law, but it's a good idea to have it anyway to protect your business.
How Much Does Contingent Cargo Insurance Cost?
The cost of contingent cargo insurance varies depending on a few factors, but the main one is the value of the shipment. The higher the value, the higher the premium will be. Other factors that can affect the cost are the mode of transportation (truck, rail, vessel, etc.), the type of commodity being shipped, and the routing.
Generally speaking, contingent cargo insurance costs about 1% of the value of the shipment. So, if you're shipping something worth $100,000, you can expect to pay around $1,000 for insurance.
How Do I Get a Contingent Cargo Insurance Quote?
If you're interested in getting a contingent cargo insurance quote, the best way to do it is to reach out to a freight broker. A freight broker is a professional who acts as an intermediary between shippers and carriers, and they're typically well-versed in the world of cargo insurance.
When you contact a freight broker for a quote, they'll work with you to determine the value of your shipment and the best way to insure it. They'll also be able to answer any questions you have about contingent cargo insurance and help you decide if it's the right option for your needs.
What Are Some Tips for Shopping for Contingent Cargo Insurance?
1. Make sure you understand the policy you're buying.
2. Consider the value of your goods.
3. Decide on the coverage you need.
4. Compare rates from different insurers.
5. Choose a policy with a reputable insurer.
Conclusion
Here's the bottom line: contingent cargo insurance is a must for any freight broker. General liability insurance will not cover the same risks, and it's important to have the right coverage in place to protect your business.
Now that you know the difference between these two types of insurance, be sure to get a quote for contingent cargo insurance. It's the best way to protect your freight brokerage business.
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