General cargo insurance
This is available in three varieties - A, B or C. Clause A provides the most comprehensive cover and clause C the least.
Goods-in-transit insurance
Goods-in-transit insurance is very important. Which insurance you have will depend on the agreements with your customers or suppliers. For example, road haulage falls under the Convention des Marchandises Routiers (CMR). This gives basic insurance cover, but it's advisable that you also take out extra insurance yourself or via your freight forwarder.
Basic shipping insurance cover
Under the transport modal conventions, you automatically have basic insurance cover (limited liability) as laid out in the Hague-Visby and Hamburg rules, which cover transportation by sea. It's advisable, though, to have additional insurance with a third-party broker or via your freight forwarder.
Marine cargo insurance
There are four types of marine cargo insurance.
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Open cover - the most flexible if you move goods regularly. You pay an annual premium plus a final adjustment based on the actual amount of goods shipped throughout the year.
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Annual policies - less flexible than open cover. You declare the details of each consignment before it's shipped.
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A single-voyage policy - cost-effective if you ship irregularly. You pay a one-off premium.
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A forwarder's open policy - similar to open cover, but is linked to a specific freight forwarder.
It's also advisable to take out contingency (seller's interest) insurance. This will protect you from your customer refusing to accept the goods if they're damaged in transit, which may not have been adequately insured by the buyer.
Airfreight insurance
The Warsaw and Montreal Conventions govern the international carriage of goods by air. For more information about airfreight insurance, see our guide on moving goods by air. |
