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The perils of being underinsured

Make sure you read the fine print before purchasing insurance abroad for freight shipments.  A
common mistake is to assume that minimum insurance gives you some degree of protection against all
perils when, in fact, it actually excludes many perils.  Protect your business interests by ensuring you
buy a policy that gives you protection against all perils.

Ivy Woo, Manager – Customs Consulting Services

Ivy Woo, Manager – Customs Consulting Services

Quick Tip #14
Don’t just insure the value of the goods

When insuring your freight, you are fully entitled to value your goods at a price above the base cost. Valuation of goods may include all freight charges, related costs, plus 10% (or more) to cover the administrative burden of processing a claim and to cover the insured’s profit. Since duty is still payable on damaged goods, make sure you insure the amount of duty as well.

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