Minimizing Risks: The Basics of Cargo Insurance During Transportation from China

Shipping products from China is a complicated process with numerous steps and potential risks. These risks can vary from delivery delays and cargo damage to customs issues and other unforeseen circumstances. All of these risks can harm your company's finances and reputation. The article discusses the critical aspects of cargo insurance during transportation from China.

Types of insurance policies available for cargo transportation

Insuring sea and air freight cargo from China is essential for protecting your business from potential risks. Let's look at the types of insurance policies you can use to protect your interests.

All-risk insurance. This type offers the most comprehensive risk coverage for shipping goods. It covers any cargo loss or damage due to unexpected events such as fire, flood, theft, and other related incidents. It is the most in-demand insurance while shipping goods from China.

Partial loss insurance. This type of insurance covers losses resulting from partial cargo damage. Compensation is based on the percentage of damage to the cargo's total value.

Insurance against cargo destruction. Compensation is provided in case of complete cargo destruction or loss. The compensation amount depends on cargo value and policy terms.

When selecting an insurance policy, it is crucial to consider your business's specifics, cargo characteristics, transportation route, and many other factors.

Getting advice from insurance experts can help you find the best insurance policy for your needs.

What does the cost of cargo insurance depend on?

The cost of insurance varies depending on various factors. Here are a few for your consideration.

• Cargo value. The more expensive the cargo, the higher the insurance cost will be. The standard fee for sea freight shipping is usually 2% of the invoice value.
• Cargo delivery route. Cargo delivery routes can be risky due to weather, politics, or theft, leading to higher insurance fees.
• Type of cargo. Valuable or non-standard items, e.g., electronics, medicines, or chemicals, may require higher insurance fees due to increased risk of damage or loss.
• Type of transport. For example, ocean freight and air freight from China may have different insurance fees.
• Insurance company and selected conditions. Different insurance companies may offer varying fees and terms. A thorough analysis of insurance policies and their terms and conditions can help you to find the most suitable option.

Cargo insurance terms and conditions include compensation procedures in case of cargo loss or damage and detailed instructions for loss assessment.

Understanding your insurance policy terms is crucial to ensure proper protection for your cargo and business.

DiFFreight provides a complete range of services for organizing and supporting container shipping from China. Our team of experts will gladly assist you in selecting the most suitable transport mode and the optimal insurance plan that caters to your business requirements and logistics needs. Don't risk your peace and financial stability. Get in touch with DiFFreight to arrange your deliveries and cargo insurance. We strive to keep your business moving forward, no matter the circumstances.