Are you a businessman who quite often ships the products across borders? How much would you naturally expect to recover in case your shipment gets damaged on the way or lost entirely? Finding out the difference between carrier liability insurance and all Risk cargo insurance coverage might leave you entirely shocked. By understanding the differences between each of these insurance types, you can be prodded to make the right decision to eliminate the risk involved in your company’s supply chain.
With that in mind, here’s everything you need to know.
What is carrier liability insurance?
If your goods in transit get damaged or lost, owners have the right to file a claim to recover the money from the carrier with regards to the damage caused. However, can use are only required to pay if they are proven to be responsible for the loss or damage of the products being shipped. The amount to be recovered is limited to the calculation based on the weight and the shipping unit of the shipment as opposed to the actual value of the goods being shipped. This is known as carrier liability insurance.
What is all-risk cargo insurance?
On the other hand, all risk carrier insurance is the broadest yet comprehensive coverage for any type of cargo being shipped. And all-risk coverage ensures the general merchandise being shipped against the risk of loss and damage from any external cost age, which is subject to the policy terms described in the paperwork, the conditions and various exclusions as well. The cargo is insured based on the value of the cargo itself without any respect to the weight or the shipping unit itself. This type of cargo insurance can be applied to do coverage too.
Standard carriers liability insurance, the maximum carrier will pay in case of any loss is significantly lesser than all-risk cargo insurance. Even if a carrier is at fault for damaging the shipment, ensuring the full protection of a commercial product being shipped is unlikely. Therefore going with all-risk cargo insurance puts everyone to rest in case of extremely valuable assets being shipped. However, If the items being shipped are not of significant value, then it would be best to go with the carrier liability insurance instead.