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Southern Colorado Insurance Center Blog

All You Ever Wanted to Know About Insurance

Cargo Insurance

In today's world of commerce, insurance professionals and their manufacturing clients need to understand the shipping environment, whether their goods will travel across the country or across the ocean. In highly competitive businesses, no one can afford to lose a customer because of cargo damage. At Southern CO Insurance we UNDERSTAND CARGO!
How can a manufacturer ensure that the buyer or consignee receives delivery without damage?
The answer is simple: proper transit preparation.
1. The first step is to understand the product's susceptibility to damage. This should take into account the exposures of theft, handling, moisture and water damages.
2. Once potential causes of damage are identified, a thorough review of the sales contract is a must. The contract provides important information about "supply chain" issues as well as consignee requirements for packaging, carriers, and other needs.
3. Armed with knowledge of product susceptibility and contract terms, the next step is to review the transit requirements. It's critical to understand all legs of the transit including any domestic movement, overseas transit, and most importantly, the journey to the overseas or domestic consignee. The key is to establish a vetting process to understand the capability of the carrier(s) to transport carry the goods without damage throughout all legs of the journey.
4. The final step involves packaging requirements for the goods in transit. With a solid understanding of the exposures to which the cargo will be exposed, the manufacturer can determine the most appropriate primary packaging and whether or not to use consolidation, palletization, containerization or a specific packaging type.
Soutthern CO insurance has over 25 years providing protection policies (in 7 states) for protecting our clients cargo from damage Call or email us, you won’t be disappointed with our knowledge and/or service


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