Contingent Cargo Insurance
The shipping industry is an extremely important and valuable industry, millions of dollars of products are shipped daily. To ensure that all of these shipments are properly covered, having cargo insurance is extremely important. One unique type of cargo Insurance to consider carrying is contingent cargo insurance.
What Does Contingent Cargo Insurance Cover?
Contingent cargo Broad insurance is a unique type of cargo insurance that is typically held by freight brokers. Shipping companies who end up losing money due to cargo that is either lost or broken during transit will want to hold a freight broker liable for the losses. The broad cargo insurance will then provide this protection for the time period until the cargo is received by the shipping company.
Who Needs to Have Contingent Cargo Insurance?
In most situations, contingent cargo insurance is not required to be held by any party. However, freight brokers would be much better covered if they have this type of insurance in hand. Contingent cargo insurance coverage will mean that the broker will have coverage in the event they are determined to be liable for products that are destroyed or lost before they are received by the shipping company. Furthermore, some shipping companies will also require that the freight brokers carry this type of insurance before they enter into a new transaction.
What are the Costs?
Similar to other types of insurance coverage, contingent cargo insurance coverage will vary in cost based on the perceived risk. Some factors that influence the cost of the insurance coverage include the types of products that are being shipped, the level of coverage and deductible, and the estimated gross revenue.