How to choose international cargo insurance?

Many importers and exporters often buy international cargo insurance in order to avoid the

loss of their own goods in order to avoid accidents.

But when the insured, you really understand the international cargo insurance clauses?

Today, myinsbroker and you take a look, how to choose the international cargo insurance.

The concept of international freight insurance

International cargo transportation insurance, is a variety of goods to foreign trade goods in

transit as the subject matter of the insurance. Foreign trade goods are transported by sea, land,

air and through postal delivery and other ways.

The types of international cargo transportation insurance are classified into four categories

according to their types of insurance vehicles: marine cargo insurance, land transportation cargo

insurance, air transportation cargo insurance, parcel post insurance.

The concept of insurance interest

The subject insured by the insurer is the object of the insurance. But the insured (the insured)

insurance is not insured, but the insured of insurance mark with interest, the interest is called

insurance interest.

The insurance contract is invalid if the insured does not have an insurance interest on the subject

matter of the insurance. As with other insurance, the insured must have an insurable interest in the

subject of insurance.

This insurance interest, in international freight, is embodied in the ownership of the subject of

insurance and the liability for the risk.

In the form of FOB, FCA, CFR, and CPT, the risk of the goods is taken by the buyer after crossing

the ship's side. In the event of an accident, the buyer's interests will be lost, so the buyer has

an insurance interest.

Therefore, the insured by the buyer as to the insurance company, the insurance contract shall be

valid only if the goods across the ship's rail after. The buyer does not have an insurable interest

before the cargo crosses the ship's side, so it does not belong to the insurer's insurance coverage

to the buyer.

In the form of CIF and CIP, the insurance is the seller's contract obligation. The seller has the

ownership of the goods, and of course it has the insurance interest. For insurance companies, the

insurance contract in the shipment of the goods after shipment is effected.

It is almost every single export business to handle international freight transport insurance,

but it should be both safe and economical. Due to the wide variety of cases in practice, how to

flexibly use insurance and avoid risks in the transportation of export goods is a very skilled

professional job.

Five elements of risk selection

In the case of insurance, many owners want to find a balance between the scope of insurance and the premium.

To achieve this, we first need to assess the risks that we are faced with, identify which risk is the most

probable and most likely to happen, and weigh it with the premium rate of different types of insurance.

Of course, the risk of multiple investment is much stronger, but the cost of premium must also be increased.

When the exporter is insured, the following factors are usually taken into consideration.

1. types, properties and characteristics of goods

In the purchase of international freight insurance, the first thing to pay attention to is the kind, nature and characteristics of the goods.

Generally speaking, if the goods that are transported are more expensive, and the risk is bigger in the process of transporting goods,

it is easy to have problems, so they will buy more kinds of insurance.

On the contrary, if the goods are cheaper and the transportation requirements are not very high, they will buy less insurance, because even

if the goods have a partial loss, they will not have a great impact on their overall business.

2. packing of goods

The packing of the goods is an important factor in the exporter's insurance, and it also affects the vulnerability of the goods.

3. transport of goods

(including means of transportation, means of transportation, transport route)

In the course of cargo transportation, the choice of different transportation tools and routes will also have a great impact on the choice of

their own international freight insurance.

Generally speaking, if the distance is far away, and the risk of goods transportation route is larger, for example, if we want to go through

Cape of Good Hope or Somali sea area, then the general cargo owner will put more insurance to protect his cargo safety.

Of course, if it is in the offshore transport, there is no need to waste too much money, for example, only goods shipped to Korea or Japan,

the probability of occurrence of the risk in the process is very small, many owners will only buy some insurance, in order to save their

transportation costs.

4. loss in port and loading and unloading process

Considering the loss of port and loading and unloading process, it is one of the effective ways to use insurance tools to reduce the loss of

cargo owners.

5. the destination of the political situation

This is mainly to consider whether to buy some special additional risks.

In general, the political situation in the port of destination is stable, and the attention to special additional risks can be minimized.

If the political structure of the port of destination is rather chaotic, if there are frequent strikes or small-scale wars, it is better to

put some special additional risks into account for the sake of safety of their own cargo, so as to avoid unnecessary losses to their goods.

It is very important to take into account the various conditions of the goods, which can not only save the premium, but also improve the

degree of risk security in a more comprehensive way. Now the export business generally meager profits, and the possibility of risk occurrence

has a trend of increase, so when the insured should be carefully weighed.

The above is the factor analysis that the owner needs to consider when buying the international freight insurance.

Of course, if the owner wants to be simpler and more comprehensive, it can also directly purchase all risks. Although we need to pay more,

it will ensure the safety of the goods to the maximum extent if any contingencies are included. So, what is the case for all kinds of risks?

When can we choose all kinds of risks？

All risks are one of the most common types of insurance. The letter of credit opened by the buyer is also required by the exporter to cover all risks.

It is the most convenient to insure all risks, because its responsibilities include FPA, WPA and 11 general additional risks. The policyholder

does not bother to consider what additional risks should be selected. But often the most convenient services need to be paid the most.

All risk is selected as the main subject depending on the actual situation. For example, wool, cotton, linen, silk, silk, clothing and chemical

fiber products are more likely to suffer losses, such as sticky dirt, hook loss, theft, short time, rain and so on. It is necessary to insure

against all risks. Some goods are not necessarily necessary.

Myonline insurance Brokers is a company that has extensive experience in insurance service, and has more than 10000 service companies.

If businesses need to insure international cargo transportation insurance or need other kinds of insurance in operation, they can consult free