How to Get Cargo Insurance

Shipping items—no matter if it’s by land, air or sea—comes with certain, often uncontrollable risks. When the item is of high value, be it financial or personal, getting cargo insurance can help relieve the anxiety caused by the shipping process and cover your losses should something go wrong.

Instructions

Difficulty: Moderately Easy

1. Gather information needed for an insurance quote. The potential insurer will need to know what the item is you’re shipping, how much it is valued at, how it will be packed for shipment, where it is being shipped from and where it will be sent to.
2. Get quotes. Cargo insurance is available from freight and shipping companies, brokers and insurance agents. You can call these places directly for a quote or check online. Many sites have Web-based systems for quotes.
3. Understand your options. Check to make sure you are comparing the same options from each company by asking for an exclusions list. With most policies, there are certain situations in which the insurance will not cover damages, and some policies may be more inclusive than others.
4. Purchase your policy. Often, this can be done right from the insurer or shipping company’s Web site and certainly by phone.

Tips & Warnings

• Most insurers will allow you to purchase additional insurance to cover any exclusions that may be an issue for your cargo.
• Make sure to find out how far your cargo is insured for. With some policies, there is door-to-door coverage, but with others, most often marine cargo, the shipment may be covered only during actual transport and not inland.
• Check to ensure your cargo is insurable. There are certain items such as jewelry and dangerous goods that no insurer will cover.