Freight insurance, or goods insurance, is an insurance policy that protects goods’ owners against financial loss when goods are on their way from supplier to recipient.
It is the goods owner's responsibility to insure the goods.
Any business that sells, buys or otherwise has goods in transport, should consider whether a freight insurance should be considered. If you have a freight insurance, the claim against your forwarder will be handled by your insurance company.
As a trading company, are you considering freight insurance?
Here are some issues to consider:
- Can the company withstand a loss equal to the entire consignment?
- Does the company want financial compensation for any loss, from an insurance company assuming the risk for the goods, and replacing any damage/losses incurred?
- Should the insurance only insure against catastrophic losses, or does it want “complete coverage” ?