CARM: What all importers need to know about CARM

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Cargo Insurance – Proper Packaging

Cost - Insurance - Freight

Cargo insurance is vital for the protection of products shipped both domestically and internationally. Aside from offering protection from financial losses associated with lost or damaged cargo, cargo insurance protects shippers from a variety of other shipping risks, such as the law of General Average.

While cargo insurance can help protect the shipper’s interests, there are common insurance exclusions that should be kept in mind. One of the most important exclusions is loss or damage due to improper packaging.

When a shipper fails to properly secure cargo with proper packaging techniques, products can easily be damaged while in transit. For example, reusing corrugate boxes or crates that are loosely built or shipping in packaging that clearly cannot withstand a given voyage, can result in losses that would not be covered by cargo insurance.

In these instances most shippers are surprised to learn they are not covered by cargo insurance, even though they have requested specific cargo insurance coverage. The causes of this exclusion can be easily avoided with proper planning and practices by the shipper.

For more information, contact David Lychek, Manager – Ocean & Air Services.

Quick Tip #22
Put delivery and handling instructions in more than one place

Increase your chances of completing a successful delivery of a package by putting handling and delivery instructions on at least three of the surfaces.

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