Manufacturers and third-party logistics professionals often must send goods across the sea to reach customers around the globe. Because oceans are unpredictable places, cargo on ships faces many risks. Smart businesses owners purchase contingent cargo insurance to protect their financial investment during every phase of the supply chain. Unfortunately, because state law does not regulate cargo insurance, business owners cannot rely on boilerplate language to get comprehensive coverage.
Understanding Shipping Risks
Ranging from rough waters to theft, cargo faces many risks during transit at sea. Before manufacturers can protect themselves financially from loss, they must understand the unique hazards of the supply chain. Some of the biggest challenges to safety in shipping include the following:
- Natural Disasters
- Rough Handling
- Ship Overturn
- Non-Delivery Jettison
Purchasing Adequate Coverage
To best protect goods, manufacturers opt for contingent cargo insurance. Since policies vary widely, though, business owners must carefully review language to ensure they have the right protection for their shipping needs. Generally, smart manufacturers select both shipping and warehousing coverage to protect cargo throughout the supply chain.
Working With a Knowledgeable Agent
Since business owners cannot depend on standard language in cargo insurance policies, they work with a knowledgeable agent to get the coverage they need. Because these providers understand the shipping chain, they can suggest comprehensive, affordable coverage to help manufacturers protect a shipment until it reaches their customers.