How valuable cargo is processed

International transportations can be associated with unpredictable circumstances, such as technical problems or changes in route conditions. Insurance of both the transport itself and the goods will help preserve the value of the cargo.

Insurance contract: what information is required?

Before concluding a contract, the insurance company collects full information about the cargo. The amount of the insurance premium, the list of covered risks, and the insurance conditions depend on this data.

Type of cargo
It can be general (packed in bags, boxes, or containers), liquid, bulk, break-bulk, or even live (for example, animals).

Cargo specifics
This category includes valuable (banknotes, precious metals, jewelry) and exhibition cargo (exhibits, art objects, cultural values).

Physical characteristics
Parameters that affect the assessment of insurance coverage – weight, dimensions, number of cargo spaces.

Packaging
The quality and type of packaging determine the level of cargo protection during transportation.

Vehicle
It is necessary to specify the type of transport, its technical condition, and the specifics of the transportation.

Format of transportation
This can be internal transportation, transit transportation, or international (export or import).

Frequency of transportations and route
Transportations can be one-time or on a regular basis, which affects the validity period of the contract. It is also important to specify exact points of departure, destination, and possible transit stops.

Insurance risks
Events covered by insurance: damage, accident, theft, destruction, etc.

Each insurance company uses its own tariffs and risk assessment methods, so the cost of similar insurance policies may differ.

Types of insurance

For international transportation, the legal document “Institute Cargo Clauses (ICC)” is of great importance. It regulates the rules for cargo insurance during its transportation between countries and defines the classification of insurance policies, namely:

• Maximum insurance (against all risks). Covers most unpredictable situations, but has exceptions. Does not compensate for losses if the cargo was damaged due to military actions, nuclear incidents, natural damage to the goods, or intentional damage to the cargo. Also, the insurance company does not reimburse losses if the carrier violated transportation rules, in particular, concealed vehicle malfunctions or did not comply with traffic rules.
• Average insurance (against specified risks). Covers losses from the destruction, damage, or loss of cargo as a result of specifically defined events: natural disasters, fires, accidents, etc. Insurance conditions also include cases where cargo is thrown from a vehicle for rescue during an accident, and these risks must be clearly stated in the contract.
• Insurance with limited risk coverage. The policy covers only the main risks, such as explosions, fires, accidents, damage during loading/unloading, or throwing goods from transport for rescue.

Processing valuable cargo requires a careful approach to choosing the type of insurance, as they need coverage from all possible risks. The company GlobalPost will help you choose the optimal policy and ensure the protection of your cargo at all stages of transportation.