When it comes to shipment management, one of your key concerns is whether the shipment will reach its destination safely and on time. You take all reasonable steps to ensure that the consignment is handled carefully at all times throughout the route. However, you have no control over a number of things as an internet merchant, including the weather or other natural disasters, political unrest, the handling of goods, theft, etc. These may negatively affect the quality of your goods and, in some situations, make them unfit for delivery, causing you to incur large losses.
One of the best ways to deal with such losses is parcel insurance. You may cover a variety of these inadvertent losses with parcel insurance, which can make the difference between going bankrupt and starting over.
What is Parcel Insurance, and Why Do You Need One?
A carrier is required by law to insure the goods when they agree to convey your cargo. This kind of coverage is known as carrier liability insurance. Particularly when it comes to expensive or frequently purchased commodities, carrier liability does not always cover the entire worth of the goods. Consequently, selecting parcel insurance above and beyond the minimal carrier liability insurance provided by shipping firm is the best approach to receive the maximum liability insured.
Using a form of protection called parcel insurance, businesspeople can protect the goods they are sending or receiving. It protects your package from damage, theft, and maltreatment among other things from the time it is delivered until it reaches its destination.
Types of Risks That Shipping Insurance Covers
There are numerous types of parcel insurance, each serving a specific purpose. Researching the many types of coverage each policy offers and then selecting the one that best suits your needs is the simplest way to choose the best parcel insurance for you.
The damages that parcel insurance covers are listed below:
Physical Damage
It commonly changes hands while transporting goods over a long distance. Damage might occur if your cargo is handled improperly during loading and unloading. Due to severe weather, accidents on the road, and other causes, the product may be destroyed while in transit. All of this damage will be covered by the physical damage insurance.
Stock Throughput Damage
Risks to stock throughput arise when goods are imported and kept in your warehouse before being further shared. This kind of insurance guards against harm to your stock while it is being kept in your warehouse.
Rejection Risks
Government officials frequently reject some cargo during international shipping because it does not adhere to specific requirements. In this case, the non-payment for the items causes the provider to incur huge losses. Depending on the policy, rejection insurance may cover all or a portion of the cost of such a transaction.
Exhibition Risks
In order for potential customers to see their products up close, many suppliers send samples of their goods to trade events and exhibits around the world. But this leaves the goods open to transportation risks and any other harm that might arise during the show. The insurance policies that cover exhibition risks pay for such damages.
Benefits of Parcel Insurance
Sense of Security
Above all things, having your goods insured gives you a sense of peace and security. You are no longer concerned about the numerous ways your cargo could be ruined. You can exhale with relief and resume managing your business once you’ve insured your goods against all of the most common risks.
High-Risk Protection
You are given the much-needed security against any significant financial loss brought on by damage to your package by parcel insurance. Being partially, if not totally, reimbursed for your losses by the insurance company gives you the freedom you need to get back on your feet.
Protection from Mishaps
We occasionally experience a great quantity of calamities, and when they do, we must be ready to deal with the aftermath. Disasters cause enormous losses for many businesses, severely restricting their ability to carry on with business as usual. However, you’ll very probably be compensated by the insurance provider if you’ve insured against a predictable group of comparable workplace accidents.
Protection from General Average Cost
General average costs are the costs that are borne by all parties to a trade in the event that the shipping carrier is damaged. It’s a fundamental idea in world commerce, and it can keep you up at night. The carrier corporation mandates that all of the suppliers of the cargo on the container pay a certain amount in the event that the carrier is damaged, failing which the items will not be released. If you have coverage for these expenses, your insurer is liable for covering them.
Secure Your Shipments with Shiprocket
Don’t worry about the damaged or lost shipment because the shiprocket is here for your rescue. Shiprocket can help you protect your high-value shipment. The safety of your shipment is our top priority.
Shiprocket Offers Two Protection Covers Options
Selective Cover: Opt for protection on individual shipments and bulk shipments above Rs. 5000 and below Rs. 25 lakhs. This type of cover allows you to choose specific shipments as and per your requirements. Not all shipments are covered automatically, and you can choose the specific shipments you wish to secure.
Blanket Cover: Opt for security on all shipments in the Rs.5000 to Rs. 25000 brackets. When selecting this coverage, all your shipments will be secured automatically.
