Protect Your Products By Obtaining Goods In Transit Insurance
If you are a company that ships or stores merchandise elsewhere
, you may want to consider getting insurance to protect your items when not in your possession. This may be when shipping from one branch office to another, transferring from a manufacturing plant to warehouse or sending to consumers or retailers. The items are at risk but your typical insurance may not cover the items while they are moving from one place to another or while they are temporarily stored. The answer to protect your investment is to secure goods in transit insurance.
What does the insurance cover?
If merchandise is stolen it will be covered. This is especially valuable for items that are in high demand and may be more prone to theft. Loss is also covered in case there is a problem where the items are misplaced without a crime being committed. Damage to merchandise is also covered. Damage can occur during transit by getting jarred or dropped while moving. It can also occur as a result of an accident. If a driver, for example, is involved in an auto accident and the goods that are being shipped are damaged, the insurance would cover this incident. There is also coverage available that will protect you from the consequences of delays because of the theft, loss or damage to the merchandise.
How much is covered?
Prior to getting insurance you need to determine the value of the goods that are shipped. From there you can choose one of two options for coverage and this will determine how much is paid out in case there is a claim that is filed. First, there is replacement value or old-for-new insurance. This means that the items that are being shipped will be replaced at current market value in case they are stolen, lost or damaged. Then there is indemnity insurance. This will cover the merchandise while taking into consideration appropriate depreciation.
How much does it cost?
The cost of goods in transit insurance greatly varies depending on what type you choose to get. Indemnity insurance is the cheaper of the two because depreciation is considered. Old-for-new is beneficial in case you need to make a claim but it is also significantly more expensive. It is advisable to check around with various carriers and get quotes for both types before determining which one will best suit your needs and budget.
Variables:
As with all insurance your rates are subject to increase if you have a history of merchandise getting lost, stolen or damaged. This is because you are a higher risk and with higher risk comes greater cost. In the same light, if you have taken particular measures to make sure your merchandise is particularly secure your cost may be less. The type of merchandise to be covered may require additional considerations and these should be discussed with your insurance provider.
These may include food spoilage, legal coverage and garage cover. If you are on a tight budget, consider leaving these special items off.
by: Lawrence White
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