Insurance Basics for Supply Chain Intermediaries
Supply chain intermediaries are an essential part of any company’s product distribution channel. They allow a company to distribute goods and products to the end-user without having to own an entire supply chain. Insurance for supply chain intermediaries is important for the protection of lost or damaged cargo during transportation. Theft, natural disasters overseas, irresponsible handling of goods, jettison, and collision are a few transit risks that insurance covers. However, since there is no standardized state law regarding cargo insurance, coverage can vary significantly depending on the insurance terms.
One insurance plan to consider is a Shippers Interest Policy. While carrier’s insurance relies on the liability of the carrier and their ability to pay for lost or damaged cargo, a Shippers Interest Policy covers these expenses despite whether or not the carrier is liable. When it comes to insurance for supply chain intermediaries, always compare the coverage that is being offered versus what you need. Priorities such as warehousing, storage, on-deck coverage, international and domestic cargo coverage, and high priority or project cargo should be important factors when deciding on an insurance plan. Cargo owners with limited resources often do not realize the many risks associated with transportation and they may not be properly insured to protect their company from these risks. Finding a cargo insurance company that is willing to guide you through the process is in your best interest.