If your company makes things, you must get your product to your customers regardless of their location. When you put your goods onto an airplane, truck, train, or boat, however, they face many risks. Instead of leaving safe transit of your products to chance, you might consider purchasing contingent cargo liability coverage to better manage risk.
Understand Shipment Risk
When products are in the factory or warehouse, they are relatively safe. When they take the air, road, rail, or sea, however, manufactured goods often sustain damage due to the following risks:
- Rough Handling
- Inclement Weather
- Vessel Collisions
While many common carriers have some level of insurance to protect your goods, coverage varies widely. Instead of relying on what might be inadequate protection, then, you might consider purchasing your own contingent cargo liability coverage after you understand the many risks associated with shipping products around the globe.
Consider Insurance Needs
Before you can purchase a comprehensive cargo insurance policy, you likely need to analyze your business processes. Often, smart manufacturing managers choose to expand storage coverage, frequently opting for additional warehouse to warehouse protection. Similarly, if the value of manufactured goods is considerable, you might opt for high-value coverage. Either way, by collaborating with a knowledgeable insurance provider, you can likely get the right coverage to protect your products regardless of their position in the distribution chain.