Cargo insurance during transportation from China

Risk minimization: basics of cargo insurance during transportation from China
Transportation of goods from China is a complex process that involves many stages and potential dangers.

From delays in delivery and possible cargo damage to customs problems and other unforeseen circumstances, all these risks can negatively affect your company's finances and reputation. In this article, we will discuss the key aspects of cargo insurance during transportation from China.

Types of insurance contracts for cargo transportation

Insurance of cargo transported by sea or air is an important part of protecting your business from risks that may arise during the delivery of goods from China. Let's take a closer look at the types of insurance policies you can use to protect your interests.

All-risk insurance. This type of insurance policy provides the broadest coverage and compensates for loss or damage to cargo as a result of various unforeseen circumstances, such as fire, flooding, theft, and others. This type of insurance is most in demand when transporting goods from China.

Partial damage insurance.
The policy covers losses arising from partial damage to the cargo. The indemnity amount is determined by the percentage of damage to the cargo from its total value.

Cargo destruction insurance. Compensation is provided in case of complete destruction or loss of cargo. The amount of compensation depends on the value of the cargo and the terms of the insurance policy.
When choosing the type of insurance contract, it is important to take into account the specifics of your business, cargo characteristics, transportation route, and other factors.

Consulting with insurance experts can help you understand which type of insurance policy best suits your needs.

What determines the cost of cargo insurance

The cost of insurance can vary depending on various factors. Here are some of them that you should take into account.

  • The cost of the cargo. The more expensive the cargo, the higher the insurance premium will be. Usually, for sea transportation, the standard premium is 2% of the invoice value.
  • Cargo delivery route. Some routes are considered to be more risky due to unstable weather conditions, political instability, or a high rate of theft, so the insurance premium will be higher.
  • Type of cargo. Non-standard or high-value goods (e.g., electronics, medicines, or chemicals) may require higher insurance premiums due to the increased risk of damage or loss.
  • Type of transportation. For example, sea transportation of goods and air delivery from China may have different insurance rates.
  • The insurance company and the conditions chosen. Different companies may offer different rates and conditions. A detailed study of the offers and terms of insurance policies will help you find the best option.
The cargo insurance terms and conditions cover the details of coverage, payments in case of loss or damage, the loss assessment procedure, and documentation requirements.
It is important to understand the terms of your insurance policy to ensure that your cargo and business are properly protected.

DiFreight provides services for organizing and supporting container transportation from China. Our experts will help you choose the most convenient mode of transportation and the best insurance plan that meets the specifics of your business and your logistics needs. Don't risk your peace of mind and financial well-being - contact DiFreight for your supply chain and cargo insurance needs. We work to keep your business moving forward, no matter what the circumstances.
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