Cargo insurance coverages include shipment transportation via water, air, road, and rail. But to what extent you’re covered will depend on the type of policy you choose. Pay close attention to the details of your policy and clarify any doubts you may have with your insurance provider before signing the document.
All risk
The all risk coverage offers one of the broadest types of coverage with a wide range of protection against external factors. In general, it covers most types of physical losses and damages as a result of the external causes a merchandise may encounter. This is usually for what’s deemed as “approved” or “general” goods, which are goods that are new and not easily susceptible to losses and damages.
Named perils policy
The named perils policy is also formerly known as the “Free of Particular Average”. Unlike the all risk, it covers only the losses caused by the perils specifically named in the policy. So it’s generally more limited. This policy can include:
- Vessel collision
- Vessel sinking
- Derailment
- Bad weather
- Non-delivery
- Fire
- Earthquake
- Theft, etc.
General average
General average is a maritime concept that, depending on the outcome of the condition of your cargo following a peril at sea, could anger or relief some.
