Cargo insurance is a type of insurance that can be purchased to provide coverage for items that are being transported on a ship. This is a type of insurance that businesses should consider investing in if they are regularly going to transport goods across the water.

What It Covers

This type of insurance covers several potential losses that a company could experience as a result of shipping over the water. Cargo insurance can protect against damage to the property that is incurred while in the shipping process. Another problem that is commonly experienced is losing cargo overboard. When a ship encounters a bad storm on the water, it is possible to completely lose cargo over the side. If you have cargo insurance, it will reimburse you for the cost of your materials that were lost.

Single Voyage or Open Cover

Within this type of insurance you can purchase two different types of coverage. One type of coverage is called a single voyage policy. This will cover your cargo for any single voyage. With open cover, you can set up a long-term arrangement with an insurance company in order to get coverage on all of your shipments.

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