If you are involved in the transportation of goods, you have probably heard about insurance policies. But do you know exactly what a policy is? What is a policy for? We will answer these and other questions in this blog and expand your knowledge by exploring the different types of policies available.
What is an insurance policy?
An insurance policy is a contract that provides coverage for risks and losses associated with the transportation of goods from one place to another. It is used by transportation companies, logistics operators, cargo generators (exporter and importer), customs brokers, cargo owners, among others.
What is an insurance policy for?
An insurance policy serves to protect those involved in the transportation of goods from the risks associated with loss, damage and theft during transportation; whether by road, sea or air, it may also cover other related expenses depending on the type of policy you favor.
Insurance policies serve several additional important purposes, such as:
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- Financial protection: protects the insured from the consequences of a loss.
- Risk transfer: these allow policyholders to transfer the risk of loss to the insurer and the insurer is financially liable.
- Peace of mind: having a policy gives you security and peace of mind, since you have the confidence of being protected against any eventuality that may arise.
What does a cargo insurance policy cover?
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- A transportation policy is an insurance policy that provides coverage for risks and losses associated with the transportation of goods, the scope of each coverage varies according to the policy and the company that issues it, with JAH INSURANCE BROKERS you have three coverage options:
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- TOTAL LOSS: Provides total loss protection for goods.
- FULL COVER: Provides protection for goods for partial and total losses.
- FULL COVER PLUS: Protects the entire logistics chain and complements with additional property coverage.
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What types of policies are available?
There are two types of policies: annual or specific.
Annual or automatic policies are continuous, covering multiple shipments of cargo during a specific period, generally one year, with this modality the insured has continuous coverage without the need to obtain a separate policy for each shipment.
Specific policies provide coverage for specific cargo shipments to be made during a specific period, generally with a limit of coverage for each individual shipment.
It is important to seek good advice when it comes to cargo insurance, since under the contracting of this policy is the protection of your patrimony, the fulfillment of your contractual commitments and the prestige of your company. The topics discussed in this article inform you about everything you should know about a cargo insurance policy, now seek advice from the experts on the right way to take the policy.
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