Transit insurance is a type of insurance that covers loss or damage to items that are in the process of being transferred from one destination to another. These policies only pay out if accidental damage or loss is incurred while the product is in the state of transfer. Sometimes the cost of this insurance will be covered by the consignment agent or Shipping insurance companies’.
When do you need to insure
You may be transferring a variety of products including clothing, expensive artwork or accessories, or books, or breakable items. If the average cost to insure the product is less than what you have to spend replacing loss, or stolen or damaged items then buy a shipping insurance plan to alleviate the risk. General mainstream policies would not pay-out. Hence it is important to buy aptly covered freight insurance and transit insurance policies
Benefits of the shipping insurance policy;
Anything can happen during the shipping of expensive items or other products. With customer expectations being constantly on the rise, getting shipping insurance done should always be on your radar. Benefits include;
- Taking out this type of insurance offers peace of mind,
- It protects the owner against the risk that their goods accidentally are damaged or lost while transfer
- It is convenient and easy to add shipping insurance to your package.
- This can be done without any hassle right at the time you are paying for shipping.
- This nominal fee is automatically added to your overall shipping price.
- If there is damage, loss, or theft, you get a financial reimbursement.
Minimize risks by buying a shipping insurance plan of the consignment
You need to find ways to mitigate the risk as much as possible. One of the main risks of not buying shipping insurance is the cost of sending the replacement product to your client. if there are big volumes or the products are of high value, you should calculate shipping errors and buy a shipping insurance plan as an important part of the loss prevention strategy. There are important considerations to understand and implement when it comes to making the decision to buy a shipping insurance plan. Keeping these aspects in mind will help you decide whether or not to purchase the insurance plan.
- Type of product: There are certain kinds of goods that are more likely to be stolen as they can be easily resold or pawned. Higher-end brand products such as Elvi bags, compact and easy-to-grab boxes are likely to be misplaced. Even if the best practice would be to avoid using the brand box, or boxes that indicate what is inside, still they need to be insured as they are expensive.
- Destination: some areas are known for theft and damage than others. Insuring packages should a general best practice for domestic and international orders.
- Incorporating innovative technology such as tracking and signature requirements can reduce risk, but even in these scenarios, carriers will impose coverage limits. Also, many third-party insurers require some basic level of trackability to insure your package.
Signs that indicate that you need to purchase a shipping insurance plan
Many products are costly and require special care while shipping. Despite selecting the best carriers for these items, accidental damages can occur. Thus you can never be completely sure of a safe delivery. Hence it is important to buy a freight insurance plan. In case there is damage, or theft, or loss or theft, you can get financial reimbursement. Few signs that indicate that getting shipping insurance is a must include;
If packages contain breakable material such as glass,
If packages are expensive or there is a bulk consignment
If packages contain certain explosive material
If packages are transported during the rainy season or snow etc