When working in the cargo industry it’s important to secure marine cargo insurance in the event that a problem arises during the transportation of freight. You can mitigate the risk of financial loss to nearly any items in your custody and control. Marine cargo claims are filed, when proper coverage is in place, for any goods that go missing, end up lost, or become damaged during domestic and/or international transit.
Cargo insurance may be written to protect goods traveling by sea, air, truck, or rail. Because items may be shipped in a variety of different ways, your policy can include coverage throughout the distribution supply chain, including while warehoused or in storage.
Common causes of damage to goods in transit
Shipments can become damage from any number of incidents. Cargo can easily sustain damage in the event of a collision involving a truck the items are stored in. Rough handling, tossing, or over stacking of goods can result in the merchandise becoming broken or otherwise no longer sellable to consumers. Theft is often a concern due to the great lengths that the merchandise may often travel and a lack of proper security.
Then there may be situations where all parties involved in shipping share the blame for any losses that occur, as in the case where it results from a voluntary sacrifice of part of the cargo (jettisoned) to save the remaining items in the case of an emergency. The loss could also stem from a natural disaster. General Average is a term that expresses this particular set of circumstances.
It’s important to notify your claims representative immediately when a loss occurs. You’ll need to document the condition of the cargo upon delivery. Digital photos are a quick and easy way to present evidence of a loss. It’s also important to separate the damaged goods from items still in good condition. When the claims agent arrives, he or she will want to see any packing materials used as part of their inspection to determine where the fault may lie.
The client should file notice against any and all carriers to help assess who actually should take responsibility for any loss. Make sure to retain all copies of shipping documents. This will help to make the marine cargo claims procedure run efficiently as possible.