Suppose a truck loaded with essential products for your clients suffers an accident en route. The cargo becomes completely unusable, delivery deadlines are missed, and worst of all, the company faces a significant financial loss that directly impacts its stability. This setback jeopardises both daily operations and customer trust. However, this would not have happened if cargo transport insurance had been in place.
Pensado para garantizar la protección de tus bienes desde el punto de origen hasta su destino final, ayuda a minimizar los riesgos y asegurar la continuidad de tus operaciones. Si buscas este tipo de solución que se adapte a tu negocio, Ambler es tu correduría de seguros de confianza.
Throughout this guide, we explain the key aspects of cargo transport insurance and how it can be the factor that saves your company from substantial financial losses.
What is cargo transport insurance?
This type of protection is a policy that provides coverage against the risks involved in transporting goods, ensuring that cargo is protected from origin to final destination. If you run a business or are a freelancer managing product shipments, this insurance is essential as it mitigates the financial impact of unforeseen events during transit.
But what unexpected events are we referring to? While we detail coverage later in the article, generally, cargo transport insurance covers damage, theft, loss, or any other unforeseen incident that may occur during the shipment. Different modes of transport—road, sea, air, and rail—have their own specificities, and the type of insurance required can vary depending on the transport method used.
Types of Cargo Transport Insurance
There are different types of coverage within transport insurance, each tailored to the specifics of the cargo and the company. Below, we explain the main types of insurance:
Damage Insurance
This type of insurance covers physical damage that goods may suffer during transport, such as breakage, impacts, or deformations. For example, if a box of goods breaks due to mishandling during transit, this coverage would cover the cost of the damaged goods.
Liability Insurance
It covers damage the carrier may cause to third parties during the transportation of goods, such as accidents or damage to others’ property. For instance, if a truck carrying goods causes an accident and damages another vehicle, all costs would be covered.
All Risks Insurance
This insurance provides comprehensive coverage, protecting the cargo against any unforeseen event, from damage to theft, regardless of the cause. For example, if the goods are lost during transport due to an accident, this policy would cover the full loss.
Common Coverages in Cargo Transport Insurance
When purchasing cargo transport insurance, it is important to understand the coverages provided, as these can vary depending on the contract:
Theft
Coverage against theft of goods is essential, as theft can occur at any point during transit, especially in high-risk areas.
Damage During Transit
This type of coverage protects goods from damage that may occur during transport, such as accidents, mishandling, or adverse weather conditions.
Loss of goods
Imagine all your products are lost due to an accident or a failure in the logistics process. In such a case, the insurance would cover the total or partial loss of the goods.
Delays
Some contracts include clauses that cover delivery delays, especially when they impact the company’s business operations.
Natural Disasters
The insurance may also cover damage caused by natural disasters such as floods, storms, or earthquakes that may harm goods in transit.
What factors influence the cost of cargo transport insurance?
Many factors affect the cost of this type of insurance. Below are the main factors influencing its price:
Type of Goods
Transporting a shipment of fruit is not the same as transporting heavy machinery. Fragile, hazardous, or high-value goods typically incur higher premiums.
Mode of Transport Used
The type of transport also affects the insurance cost. Air transport, for example, is more expensive than road transport due to its speed and lower cargo capacity.
Declared Value of the Goods
The higher the declared value of the goods being transported, the higher the insurance premium, as the risk increases.
Distance and Destination
The distance the goods will travel also affects the insurance cost. More remote or high-risk destinations typically increase the premium. For example, exporting products from Spain to the United States differs in cost from shipping within the European Union.
Claims History of the Company
If the company has had multiple insurance claims in the past, premiums are likely to be higher due to the increased perceived risk.
Who should take out cargo transport insurance?
To understand who should take out this insurance, let’s look at the various parties involved in the cargo shipping process:
Sender
Generally, this person or organisation is responsible for taking out the insurance, as they assume the initial risk during the transit of the goods. This ensures that, should any damage or loss occur during transport, the products are protected and the sender can receive appropriate compensation.
Recipient
In certain cases, the recipient may also choose to take out the insurance, especially if the goods are of high value or if additional protection is desired. For example, in international transport or when goods travel via higher-risk methods, the recipient might assume responsibility for insuring the cargo if the sender has not already done so.
Carrier
On the other hand, the carrier may offer their own insurance, which in some cases covers damage during transport. However, it is advisable for the sender to also take out an additional policy. While the carrier may have insurance, it might not be sufficient to cover all potential risks or damages that could occur during transportation.
Cargo Transport Insurance Offered by Ambler
At Ambler, we specialise in providing tailored cargo transport insurance, customised to each client. We understand how important it is to protect your goods during transit, which is why we are committed to offering you strong, reliable, and flexible coverage.
Benefits of Our Insurance Policies
We offer flexibility and customisation in our policies because we understand that every business has specific needs and risks. We ensure coverage is tailored to your requirements, perfectly fitting what your business needs.
While premiums may represent a recurring expense, the protection provided by our insurance can help you reduce costs in the long term, ultimately contributing to your company’s financial stability.
In the event of a claim, you need not worry: our compensation process is swift and efficient. This allows us to quickly mitigate financial and operational impacts, ensuring your business can continue running with minimal disruption.
What types of coverage do we offer?
At Ambler, you can choose from the following options:
Protection Against Damage to Goods
Your goods will be fully covered, except for those specifically excluded in the contract.
ICC (A) Coverage – London Institute
We provide comprehensive “all risks” protection, covering a wide range of possible damages and losses during transport.
CCGG Insurance for Land Transport
Designed to protect goods during road transit, ideal for transport by truck or train.
Individual Policy
Ideal for those who need to insure occasional shipments or specific situations.
Floating policy
Designed for companies with irregular cargo movements, offering maximum flexibility.
Annual Policy or Policy Based on Billing Volume
Suitable for businesses with a steady flow of goods: forecasting enables cost savings.
Protect your shipments, risk-free
So, what type of cargo transport insurance does your business need? At Ambler, we offer personalised advice to help you choose the best option for your company. Remember, having this protection is a way to ensure continuity of your operations, with less risk and greater peace of mind in every shipment. For more information about our insurance policies, get in touch with our experts. We’ll be happy to answer your questions and help you protect what matters most.
