Everything You Need to Know About Equipment Transport Insurance
There are many risks associated with domestic and international equipment transport. Anyone who has ever shipped heavy machinery and oversize loads knows how many things can go wrong in transit. This is where equipment shipping insurance comes in. Read on to learn more about this type of insurance and why you need it.
What Is Equipment Transport Insurance?
Equipment transport insurance protects shipments from damage, theft, or loss while in transit, ensuring that your freight is delivered safely. It can be helpful in a variety of ways. Continue reading to find out how.
Benefits of Heavy Equipment Transport Insurance
Transport insurance safeguards against severe loss or damage resulting from external reasons such as theft, vermin, or improper equipment handling. The peace of mind from securing your equipment allows you to relax, knowing that your oversize load transport is protected.
Do You Need Equipment Shipping Insurance?
As your shipment makes its way through a series of ports, it is subjected to several risks. The danger increases in proportion to how long it goes unguarded. Factors outside your control, like bad weather, theft, and lost containers, must be accounted for.
Insurance is not always necessary, but it can be helpful if you want to avoid paying for the damage yourself. As the saying goes: better safe than sorry.
Types of Transport Insurance
There are two main types of cargo insurance. The first is motor truck insurance, which covers vehicles such as trucks or utility vehicles used to transport products over land. It covers some risks associated with land freight shipping, such as collision damage and theft.
Secondly, we have marine cargo insurance, commonly used for overseas shipments that include air and ocean freight. It involves loading and unloading damage, accidents, weather, and other hazards that affect airplanes and boats.
There are different types of marine cargo insurance policies. An open coverage policy insures freight for a specific period, and multiple shipments can be included in a single insurance policy. If you ship equipment frequently, this is an easy way to manage risks. On the other hand, a single coverage policy, as the name implies, insures equipment per shipment.
A contingency policy helps the shipper save money when the customer chooses not to insure the shipment. An All Risk insurance policy will protect you from the costs associated with damaged or lost freight shipments as long as the commodities are not prone to damage or loss. An All Risk policy is null and void in cases where a natural disaster causes loss or damage, negligence on the consignee or shipper’s part, or civil unrest, strikes, and riots.
As the name implies, a warehouse-to-warehouse policy covers cargo from when it is unloaded from a carrier until it arrives at the consignee’s warehouse. If you prefer to insure your equipment partially, you can opt for a general average policy. If any cargo is lost or destroyed as a result of an incident at sea, all owners of any cargo onboard the ship will be responsible for covering the associated costs. Even if your shipment is unaffected, the policy still requires you to cover the costs of other shippers.
What About Liability?
The most frequent types of damage, such as fire, acts of God, strikes, maritime accidents, inadequate packing, and more, are outside a logistics carrier’s obligation. Due to these limitations, it may be challenging to establish a carrier’s legal responsibility for your heavy equipment transport.
In addition, numerous businesses handle your freight during storage and transit. It can be hard to identify precisely where the damage occurred or establish who is responsible for it. Your heavy equipment transport insurance policy covers these losses, and you are not required to show liability.
What Does Cargo Insurance Not Cover?
Although most insurance policies provide comprehensive damage coverage, they may not cover all aspects. Your cargo insurance policy may not cover dangerous cargo, specialized technological items, or other pricey or delicate items. Your insurance company may refuse to cover any damage to your equipment caused by improper freight packaging. Also, If the equipment is defective, you might not be protected against cargo damage.
Pitfalls to Avoid When Choosing Equipment Shipping Insurance
The first and most important pitfall to avoid is a limited cover. Limited cover insurance policies only pay out compensation for specific events or incidents as agreed upon in the insurance contract. You should also try to avoid paying costly deductibles. Though selecting a high deductible can reduce premium expenses, choosing a more reasonable option is preferable.
By avoiding these mistakes, you can save money and get the most appropriate insurance policy.
Heavy Haulers Final Thought
This is just a brief overview of why heavy equipment transport insurance is essential for your freight. You should consider insuring your equipment and tools if you rely on them for your business
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