During international trade and shipping, cargo can face a range of risks due to long distances, varying climatic conditions, and multiple handling points. Incidents such as accidents, fire, theft, flooding, or packaging damage can lead to serious financial losses. For this reason, cargo insurance is an integral part of international trade. Novas Global Logistics provides comprehensive support and guidance to its customers on the subject of freight coverage.
Types of Cargo Insurance
Cargo insurance is a type of policy arranged to protect shipments from loss and damage. Three primary insurance clauses exist based on scope and risk level, each covering a different group of risks.
Core Insurance Clause Options
- Clause A (Broadest Coverage): Covers almost all risks; recommended for high-value cargo
- Clause B (Intermediate Coverage): Covers named risks such as fire, earthquake, seawater ingress, and vehicle collision
- Clause C (Restricted Coverage): Covers only major incidents such as vehicle overturning, collision, and flooding
- ADR Additional Insurance: Specific risk coverage for the transport of hazardous materials
- War and Strikes Clause: Covers losses arising from political risks and civil unrest
What to Do in the Event of Damage
Taking the right steps when a shipment arrives damaged accelerates the claims process. Novas Global Logistics supports its customers step by step with preparing a damage survey report, photographic documentation, notifying the insurer, and compiling the claims file.
Determining the Insured Value
In cargo insurance, the insured value is calculated on the CIF value of the goods. CIF represents the sum of the cost of goods, insurance premium, and freight costs. In some cases, the expected profit on the cargo may also be included in the insured value. Failing to determine the correct insured value creates a risk of under-indemnification.
Secure Shipping with Novas Global Logistics
Factors such as cargo type, route, mode of transport, and risk tolerance are decisive when selecting insurance. Novas Global Logistics evaluates suitable insurance options for customers when planning shipping operations and coordinates with insurance brokers when necessary. Our goal is not only to ensure your cargo arrives safely at its destination, but also to protect your rights in the event of any damage.
Contact the experts at Novas Global Logistics to learn more about cargo insurance and freight coverage. Let us ship your cargo with confidence.
