Great opportunities come with certain risks. International sourcing offers a wide range of opportunities to businesses. However, like every other business opportunity, there are some potential risks that business owners and supply chain managers must identify. There is an array of unexpected variables that can create trouble and harm your business.

One big risk factor in international sourcing is the transportation of your goods across the oceans and borders. While international cargo transport has become a lot more secure, it is still advisable to be prepared and take preemptive measures that will minimize the loss if anything goes wrong during the journey. This is where cargo insurance comes in.  

At BlinkGlobal, we provide international sourcing services to clients across the USA. Having years of experience in international trade, we always recommend our clients to get their cargo insured. In this article, our experts share some knowledge on what is cargo insurance and why it is important.

What is cargo insurance?

During national and international movement of goods, your cargo is always vulnerable to potential damages and losses that may occur due to

  •         Inappropriate packing
  •         Vessel Accidents that may occur due to Collison, Heavy weather, Sinking, Derailment
  •         Cargo abandonment
  •         Poor handling at Transits (may or may not be covered)
  •         Customs rejection (may or may not be covered)
  •         Improper storage in warehouses (may or may not be covered)
  •         Employee’s dishonesty (may or may not be covered)
  •         Non-delivery.
  •         Theft
  •         Fire

Cargo insurance provides coverage against all external causes that may damage or cause losses to your cargo during shipping. It is similar to insuring your car. You get your car insured. It may not always get into an accident, but being a vehicle, it is prone to accidents all the time.

You can purchase these policies from the insurance market. If you have a sourcing company on board, they have partnered with various vendors that will provide you the best policy. Cargo insurance is generally covered under risk policy or floating policies.

Is Cargo Insurance required by Law?

There is no such law that binds you to get your cargo insured when you move it around nationally or internationally. However, international trade experts will always recommend you to buy insurance so that you are prepared for the worst-case sceneries. Your hundreds and thousands of dollars are floating in the air or ocean and you have little to no control over the process. It is a wise decision when you compare the insurance cost against the potential losses and the perils associated with cargo movement.

Finding the Right Cargo Insurance

There are different types of cargo insurances and hundreds of cargo insurance providers. Choosing the right type of insurance for your cargo depends upon the worth and sensitivity of your cargo. If your cargo is fragile, we recommend you to get an-all feature coverage. However, these decisions can be confusing. Working with a sourcing an experienced sourcing company like BlinkGlobal can lessen the confusion and help your get the right cargo insurance for you. Let’s Talk!