The High Cost of Not Having Contingent Cargo Coverage

The process of transporting goods from one destination to another is not perfect. No matter how well you arrange the delivery there are several cargo problems that can arise. For example, the goods can be damaged due to rough handling, an accident or collision. The goods can be stolen. In some cases, they may not be delivered at all. Can your company cover the cost for these shipments? If not, these types of mishaps can strike a financial blow to your business. The good news is you can protect your profits with contingent cargo coverage. Although carriers have insurance, those policies don’t always cover the cost of the merchandise.

There are many ways cargo coverage can save you from major monetary losses. For example, you arrange for a carrier to transport clothes. When the driver reaches the terminal, a long-haul trucker picks ups the load. If the clothes are stolen when the driver leaves the truck unattended many trucker policies don’t cover apparel and garments. In another scenario, a trucker delivering frozen foods is involved in an accident. The carrier’s insurer may make a mistake and deny the claim. In both instances, you will be held liable for the shipment. These kinds of unforeseen situations can cost you thousands of dollars. When you have contingent cargo coverage, those claims will be paid thereby protecting your bottom line.