Today, we cannot imagine a business that does not operate with transportation services. However, despite technological and security improvements, the number of transportation accidents is still high. To minimize the negative effects of them, CARGO insurance was created. Thus, the owner of the cargo will receive compensation in case the cargo is destroyed or damaged.
The CARGO policy applies to any type of cargo transported by any type of transport (road, rail, sea, air, multimodal). The insurance premium is provided in situations where the cargo has been lost, damaged or completely destroyed, but within the limits of the amount indicated in the insurance contract. As a rule, in the standard terms and conditions it covers losses caused by fire, explosion, lightning, traffic accident, loading and unloading operations, natural disasters and acts of nature, theft, robbery or robbery or other risks.
The insurance contract can be drawn up for different periods of time, such as from the moment of loading to unloading or can even include temporary storage periods before, after and between transport stages.
The price of the policy varies depending on the type of contract: single or general. The first is suitable in situations where the cargo is transported only once, while the second, when this happens systematically. The price is also influenced by: the risks covered, the type of cargo, the type of transport, the route, the distance and the number of wagons, as well as the availability of security and the absence of overloads.
However, we note that CARGO insurance cannot be drawn up if the owner and the carrier are one and the same person, since for such cases there is a CMR policy.
