Imagine that you are sending a valuable package across the world. During transportation, the package may be damaged or lost due to many reasons such as accidents, natural disasters, or even theft. This is where cargo insurance comes in to protect you from financial losses that you may incur in such cases.

Why do you need cargo insurance?

1- Protection from losses: If your goods are damaged or lost during transportation, the insurance company will compensate you for their value.

2- Peace of mind: Insurance gives you greater peace of mind when shipping your goods, especially if they are valuable.

3- Legal requirements: In some cases, the customer or official authorities may ask you to provide a cargo insurance policy.

How does cargo insurance work?

4- Purchase: When purchasing an insurance policy, you specify the value of the goods and the risks you want to cover.

5- Accident: If anything happens to your goods during the insurance period, you notify the company.

6- Compensation: After investigating the accident, the company assesses the losses and pays you compensation.

Types of cargo insurance coverage:

1- All risks: covers all types of losses except those explicitly excluded in the contract.

2- Specific risks: covers only the risks explicitly mentioned in the contract (such as fire, theft, accidents).