JUST IN CASE
Every business entity that handles production, trade or provides services, including entities that export or import various goods, is at risk of incurring damage in transport. Cargo insurance will not prevent any unpleasant events, but it ensures financial compensation to cover the unexpected, often very high expenses.
– Carriers looking for transport insurance should not treat the policy as an unnecessary cost, but as an investment. The insurance provides security in situations difficult for a business entity, and may significantly limit the entity’s own costs incurred after the damage. Before making the final decision, you should check how insurance companies handle claim adjustment, what damage-related documents they require and whether there are any additional costs related to the damage,” says Sławomir Deliś, Transport Insurance Manager. “Clients can choose from very cheap insurance with a limited scope of protection, an extensive list of exclusions and a high deductible, and good, tailor-made insurance coverage that will meet their individual needs at a higher cost. A business that knows that damage in transport can threaten the company’s liquidity usually chooses the second option for a stronger sense of security,” he adds.
MANDATORY CARGO INSURANCE
Cargo insurance covers the entire transport process from loading the cargo onto a means of transport to its unloading at the destination point. Such a policy protects the business entity from damage originating from the loss, damage to, diminution or destruction of the cargo during transport as a result of acts of God.
such events include, but are not limited to, fires, explosions, floods, hail, an accident concerning the means of transport, burglary or a loss. The coverage most popular in domestic transport is “All risk” insurance, as it provides the broadest cover. In international transport, insurance coverage is formulated based on the Institute Cargo Clauses (ICC) as the recognised international cargo insurance standard.
CARRIER’S CIVIL LIABILITY INSURANCE
An informed transport, production or trading business owner should also have a road carrier’s civil liability insurance. It is worth making sure that the coverage is broad and the sum insured matches the value of the shipment (in domestic transport) or the amount of the goods’ value declared by the consignor (in international transport). A good freight forwarder’s insurance should cover civil liability resulting from the freight forwarder entering into the rights and obligations of a road carrier, air carrier or maritime carrier (contractual carrier) during the performance of the freight forwarding contracts.
SUM INSURED AND PRICE OF INSURANCE
The minimum sum insured chosen by carriers is EUR 100,000. Most often, however, considering the higher value of the cargo, the sum insured under the civil liability insurance of a road carrier is higher and amounts to EUR 250,000. In terms of maximum sums insured, the market offer reaches EUR 1.5M. The amount of contributions for transport insurance depends on many factors, including, but not limited to, the type and value of transported goods, the route, type of transport, expected coverage and loss ratio. With regard to individual cargo insurance contracts, contributions starts at several zlotys. In the case of general contracts, the minimum contribution is a few hundred zlotys.