Some importers and exporters are slightly inexperienced, and oftentimes overlook the small details that end up costing you a huge sum in the end. Here are 5 pitfalls you can avoid when choosing your cargo insurance:
- Limited cover – Limited cover is a kind of insurance policy that only pays benefits in the event of particular incidents or specific events as agreed in the contract.
- Cover on price – Most businesses tend to choose cover based on price without truly understanding terms and conditions, which can be risky.
- Reducing liability – It’s important to choose the right amount of cover to avoid cutting down on liability costs as it’s not advisable.
- Costly deductibles – Although choosing a high deductible can lower premium costs, it’s better to choose one that’s more affordable.
- Low-level cover – When the insurance is chosen by the other party, the lowest insurance is usually selected, which could not offer the cover you want.
Looking out for these pitfalls can help you save a few extra bucks and determine which cover works best for you.