What is the basic explanation of the term- Freight Insurance?

Freight insurance provides additional protection to your freight. It protects your customers and your business from financial losses resulting from freight that’s damaged or lost while in transit. There are different types of freight insurance: cargo insurance, shipping insurance, transport insurance and transit insurance. A business insurance package that includes freight insurance offers protection no matter who is at fault for the damage. While you must In addition, a good freight insurance policy may offer coverage excluded by carrier limitations, including civil commotion, strikes, and “acts of God.” The value of a package isn’t limited to the carrier’s bill of lading, nor do you have to bear the burden of proving that the damage or loss is the carrier’s fault. prove the value of the goods and the amount of the loss, there’s no requirement to prove carrier negligence. This type of insurance also covers lost packages. Having a freight insurance policy also prevents the need to make a claim against the business’s general liability insurance policy. This could help save money on applicable deductibles under both a legal liability policy for errors and omissions and a general liability policy.

The insurance is an agreement by which the insured is indemnified in the event of damages caused by a risk covered in the policy. Insurance is all-important in the transport of goods because of their exposure to more common risks during handling, storing, loading or transporting cargo, but also to other rare risks, such as riots, strikes or terrorism. There is a difference between goods transport insurance and the carrier's responsibility insurance. The covered risks, fixed compensation and indemnity of the contract of transport insurance are left to the holder's choice. Nevertheless, the haulier's responsibility insurance is determined by different regulations. Depending on the means of transport, indemnity is limited by the weight and value of the goods and is only given in case the transporter has been unable to evade responsibility. The insurance invoice is required for customs clearance only when the relevant data do not appear in the commercial invoice indicating the premium paid to insure the merchandise. The standard extent of the transporter's responsibility is laid down in the following international conventions: 1. Road freight 2. The rail carrier 3 The shipping company 4. The air carrier