Insurance for Import Cargo
Insurance for Import Cargo
Full value insurance for your goods from point of collection to final destination
What's the difference between liability & insurance?
Spatial Global is a member of the British International Freight Association (BIFA), and freight movements are covered by our standard terms and conditions in accordance with BIFA's Standard Trading Conditions 2017. However as an industry standard, this liability is limited. Should something go wrong when you’re shipping cargo, the compensation to which you’re entitled is normally calculated against a ‘limited liability clause'.
Insurance for import cargo is based upon the commercial value of the goods
Under limited liability, damaged or lost cargo is assessed by weight, not value. So in all likelihood, your compensation could be dramatically less than the commercial value of the goods. But because liability is limited, we also offer full value import cargo insurance under our Goods in Transit policy. If the imported cargo is a vital component to the success of your company, it is critically important to have proper import cargo insurance coverage. The reality is that insurance exists for a reason - things go wrong and you need proper insurance coverage to protect your goods being shipped. Goods get lost, stolen and damaged.
What if my goods arrive too damaged to sell or use?
If and where no insurance is placed, and reliance is solely on the liability limit - the owner of the goods suffers an obvious shortfall. Plus they still have to pay their supplier for the cargo and have to settle full freight with the shipping line or freight forwarder. They also have to pay full import duty to the government without receiving a single piece of sellable merchandise. Forget to check a box on a coverage form -- or assume incorrectly that your supplier insured your shipment -- and you could experience a costly loss, especially if they are shipped by sea freight.
Why is the risk greater by sea freight?
Welcome to the confusing world of cargo insurance, which is based on ancient maritime law and the 'general average' rule. Under this clause, if a vessel transporting your goods is damaged at sea or goods must be jettisoned to save the ship, all the ship’s customers share in covering the losses. You may be required to post a bond and/or cash deposit in order to obtain release of your cargo following a 'general average' claim – even though there was no loss or damage to your goods. By purchasing insurance, your insurance company assumes the responsibility and expedites the release of your cargo.
Want to protect your investment with import cargo insurance?
Whether importing using air freight, road, rail or sea freight for your international shipping, import cargo insurance covers loss and/or damage of cargo while it is in transit between the points of origin and final destination. Relying on the sellers' insurance may be a viable option, but you must be satisfied the insurance terms, valuation, and limits provided are adequate to meet your needs. And, if there is a claim dealing with a foreign insurance company, perhaps in a different language, it can be time consuming and frustrating. If there’s a claims issue, you’re also often dealing with courts in a foreign country.
What if your import cargo isn't managed by Spatial Global?
The complexities of international insurance means that many freight forwarders avoid it, but at Spatial Global we consider it to be a value-adding service - so even if we're not handling your import cargo - we positively welcome your import cargo insurance enquiry. Our full-value insurance cover gives you great cover and peace of mind, it will secure your investment in your imported cargo. What's more, in the event of a claim, we handle your insurance issues as if they were our own.