Open Cargo policy

For those who are frequent shippers, this policy covers merchandise when shipped by common or contract carriers, owned or leased trucks, worldwide. This one policy automatically covers all shipments you are responsible to insure. Advantages include lower costs, a policy tailored to your needs, knowing you have coverage on each shipment, and local claims handling.

  • Broad protection on goods in transit worldwide, including storage

  • Solutions tailored to the size and complexity of your unique exposure

  • Ocean/Air and Land Transit Insurance for goods in international trade, as well as domestic coastwise trade

  • Shippers Interest Cargo

  • Customized risk transfer options, as well as risk retention options through deductible and retrospective rating structures and use of captive reinsurers

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Trip Transit policy

For those clients who only have a few shipments a year, it’s easy! Most shipments are insured for broad “all risks” terms with no deductibles. Coverage is bound online after the premium is paid. The policy is quickly delivered to you in Adobe Acrobat format, to be printed at your location.

  • Broad protection on goods in transit worldwide, including storage

  • Solutions tailored to the size and complexity of your unique exposure

  • Ocean/air and landTransit Insurance for goods in international trade, as well as domestic coastwise trade

  • Controlled Master Programs with locally written underlying policies where required and permitted by law

  • Multiline coverage when combined with other Chubb products

  • Shippers Interest Cargo

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Storage- Warehouse Policy

Policy can include coverage for goods in a storage location, worldwide. The policy is “All Risks”, including catastrophic perils of earthquake, flood, and Named windstorm. The goods are protected whether raw, in process, or in finished form.

  • Broad protection on goods in transit worldwide, including storage

  • Solutions tailored to the size and complexity of your unique exposure

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Any Questions?

Freight insurance covers shipped goods when they’re transported via land, sea, or air. It pays the value of lost or damaged shipments up to coverage limits, minus the deductible. Policies can be purchased by the seller, the buyer, or even the shipping company. Usually, the party with the greatest financial investment gets freight insurance coverage.

Cargo insurance is a type of property coverage called marine insurance. There are two main types of marine coverage: ocean marine, for shipments by sea, and inland marine insurance, for shipments by land. Some freight insurance coverage includes all modes of transportation. Import/export companies, wholesalers, distributors, and manufacturers most likely need cargo insurance.

  • Banks require proof of insurance if a shipment is on a letter of credit;
  • Cargo Insurance provides coverage that the carriers don’t. The carrier does not insure your cargo, and their liability may be less than the value of your goods;
  • Laws and convention for transports include limitation that may reduce compensation to a certain sum per kilo. Therefore, payments may not always fully correspond to actual value of the cargo;
  • Full value compensation;
  • If you are exporting FOB or importing CIF at which point are you responsible to insure the cargo?
  • Professional and swift claim assistance through our brokers;
  • If your shipment is insured locally, claims are paid more readily.

Federal law requires trucking company carriers to carry some carrier liability insurance, but the minimum requirement may not be enough protection for your shipment. Moreover, other carriers don’t have the same requirement. This is why agents often recommend additional cargo insurance. It typically covers external causes of loss and damage to your shipment.

  • Common triggers for cargo insurance include:
  • Natural disaster
  • Vehicle accidents
  • Acts of war
  • Piracy
  • Cargo abandonment
  • Customs rejection

When a covered event causes damage to your shipment, cargo insurance pays up to the amount you insured it for, minus your deductible.

Cargo insurance has a few important limitations. For instance, it doesn’t cover carrier liability. As the shipper, you don’t need liability coverage. The carrier has the responsibility of making sure your shipment gets where it’s going. But if you’re the carrier responsible for transporting goods, then you need carrier liability insurance.

Additionally, freight and cargo insurance policies have exclusions. These are policy provisions that eliminate coverage for certain perils.

Individual freight insurance policies typically exclude:

  • Damages caused by your inadequate packing – If water seeps in and corrodes your shipment, the responsibility for the damage is on you.
  • Damages caused by faulty goods – If the carrier can show your product has a flaw that caused the damage, then they are not responsible for it.
  • Certain types of freight – Hazardous materials, certain electronics, or other types of cargo may be excluded, depending on your insurer.
  • Certain modes of transportation – Some freight insurance may exclude trucking. Others may exclude cargo ship, freight trains, or airplanes.
  • The insurance industry does not have a standard cargo insurance form, so exclusions and inclusions vary widely. Business owners who do a lot of shipping
  • and who are looking for a stand-alone policy should probably work with an agent or lawyer to make sure their freight insurance meets their needs.

Depending on your business, you may ship your good domestically, internationally, or both. You may use trains, trucks, cargo ships, planes, or a combination of all of these. That’s a lot of variations to cover. As a result, cargo insurance has a lot of variations, too.

These are a few coverage types you may need to know when looking for cargo insurance.

Land Cargo Insurance
This is freight insurance coverage for land shipments, most often via trucks and small utility vehicles. This coverage is often limited to vehicle accidents, but may also pay for theft and other damage. You want to ask if your policy includes theft coverage if your shipment needs to be stored in a truck overnight.

Land cargo insurance only applies within the boundaries of a given country. The coverage is for domestic transport only. If your shipments cross national borders, you may need additional coverage.

Marine Cargo Insurance
Most marine cargo insurance covers sea and air shipments, but some policies also cover land transport. It usually pays for damage caused by bad weather, loading and unloading, piracy, and other related risks.

Marine cargo insurance is not limited to a single nation. This makes it the appropriate coverage for international shippers.

Open Coverage
Business owners who regularly ship goods may want to get open coverage cargo insurance. It’s a type of marine insurance that covers multiple shipments made during the life of the policy. The policyholder periodically reports a group of shipments to the insurer, and these reported shipments are covered.

The policyholder also needs to provide the insurer with details about their business, such as the type of goods being shipped and their destination. Failure to provide this information can void the policy.

Single Coverage
Also called a voyage or specific cargo policy, single coverage is the opposite of open coverage. It’s a marine policy that insures one-time shipments. This policy makes the most sense for small businesses that ship products periodically.

All-Risk Cargo Insurance
All-risk cargo insurance offers the broadest coverage for shipments. It insures your shipment against external causes of damage except those outlined in the policy.

Some common exclusions in all-risk freight insurance coverage are:

  • Improper packing
  • Abandonment of cargo
  • Rejection of goods by customs
  • Employee dishonesty
  • Loss due to the nature of the product
  • Loss due to delay

With all-risk coverage, your insurer pays unless your loss is the result of one of the perils listed in your policy.

Free from Particular Average Coverage
Free from particular average (FPA) coverage is a clause that frees your insurer from covering losses in most situations. Generally, it covers events that are beyond a person’s control.

For example, free from particular average coverage for a marine insurance usually pays for total losses stemming from:

  • Stranding
  • Burning
  • Sinking
  • Collision
  • Errors in vessel management
  • Boiler bursts
  • Defects in hull or machinery

This is sometimes called a total loss only policy because you only collect if you suffer a total loss.

General Average Coverage
When you transport goods by sea, you share responsibility for the boat and all its cargo with the shipowner and other cargo owners. Essentially, if the boat or another person’s cargo is damaged to save the ship, you share in that loss with the rest of the people involved.

You may be responsible for a general average if the captain needs to abandon some cargo after the ship runs aground or is caught in a storm. Sometimes the shipowner won’t even release your cargo until you’ve paid your portion. With general average coverage, your portion is paid by the insurer.

Warehouse-to-Warehouse Coverage
Most marine cargo insurance includes a warehouse-to-warehouse clause. It insures your shipment from the moment it leaves the seller’s warehouse until it reaches the destination warehouse. Without it, your cargo is only protected when it’s onboard the cargo ship.

Warehouse-to-warehouse coverage may not be in effect in some situations. For instance, it doesn’t cover cargo if either the shipper or the consignee picks it up. Your coverage may also be impacted by sales terms, like if the buyer takes ownership before the cargo reaches the final destination warehouse.

Air cargo insurance is a type of policy that protects a buyer or seller of goods being transported through the air. It reimburses the insured for items that are damaged, destroyed or lost. Some insurance companies offer cargo insurance directly, as do several freight forwarders and trade-service intermediaries. The amount of coverage and deductible required for air cargo insurance varies based on the goods, as well as the individual provider.

While individuals sometimes buy air cargo insurance, far more often companies buy it to ship their inventory to customers and distributors, both in the U.S. and around the world. Some large companies, in fact, may have one or more employees that deal solely with air-cargo and other freight-insurance claim

This is freight insurance coverage for land shipments, most often via trucks and small utility vehicles. This coverage is often limited to vehicle accidents, but may also pay for theft and other damage. You want to ask if your policy includes theft coverage if your shipment needs to be stored in a truck overnight.

Land cargo insurance only applies within the boundaries of a given country. The coverage is for domestic transport only. If your shipments cross national borders, you may need additional coverage.

Most marine cargo insurance covers sea and air shipments, but some policies also cover land transport. It usually pays for damage caused by bad weather, loading and unloading, piracy, and other related risks.

Marine cargo insurance is not limited to a single nation. This makes it the appropriate coverage for international shippers.

Business owners who regularly ship goods may want to get open coverage cargo insurance. It’s a type of marine insurance that covers multiple shipments made during the life of the policy. The policyholder periodically reports a group of shipments to the insurer, and these reported shipments are covered.

The policyholder also needs to provide the insurer with details about their business, such as the type of goods being shipped and their destination. Failure to provide this information can void the policy.

Also called a voyage or specific cargo policy, single coverage is the opposite of open coverage. It’s a marine policy that insures one-time shipments. This policy makes the most sense for small businesses that ship products periodically.

All-risk cargo insurance offers the broadest coverage for shipments. It insures your shipment against external causes of damage except those outlined in the policy.

Some common exclusions in all-risk freight insurance coverage are:

  • Improper packing
  • Abandonment of cargo
  • Rejection of goods by customs
  • Employee dishonesty
  • Loss due to the nature of the product
  • Loss due to delay

With all-risk coverage, your insurer pays unless your loss is the result of one of the perils listed in your policy.

Most marine cargo insurance includes a warehouse-to-warehouse clause. It insures your shipment from the moment it leaves the seller’s warehouse until it reaches the destination warehouse. Without it, your cargo is only protected when it’s onboard the cargo ship.

Warehouse-to-warehouse coverage may not be in effect in some situations. For instance, it doesn’t cover cargo if either the shipper or the consignee picks it up. Your coverage may also be impacted by sales terms, like if the buyer takes ownership before the cargo reaches the final destination warehouse.

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