Goods in transit insurance safeguards property against partial damage or complete loss while it is en route to its destination. This cover can be bought both for goods distributed through a third-party carrier and for goods transported in your own vehicle. When this type of policy is issued, it often indicates the means of transport that it covers. So it may be a good idea to decide on the type of transport you will be using before buying it. You can, for example, buy specialist marine cover, if you are transporting your goods through the sea or ocean. It would cover not only the sea or ocean voyage but also any transit of your goods over land at each end of the journey.
This type of policy can protect you from damage inflicted upon your goods by accidents, as well as loss and theft of your goods while they are in transit. Moreover, it can occasionally protect you from the consequences of unexpected delay.
Before you can purchase cover for your cargo, you and your insurer have to agree on the value of your goods. When they are new, their value is easy to determine. But if the goods are used, then you migh have a problem protecting them. The insuring company may argue that they already were damaged when you ordered them. In short, this type of cover is not a substitute for quality control. So if you are buying used goods, then it might be a good idea to use some other type of insurance.
Cargo insurance has two types of coverage. One of them is old-for-new cover. It replaces lost items at their present-day market value. Another type is indemnity cover. When indemnity cover is used, the broker will take into consideration general depreciation. Though the old-for-new coverage is a much better option, it is far more expensive. Also, if you choose old-for-new coverage, it is important to value your goods not at their actual value but at their replacement value.
Goods in transit policies can have special features, such as built-in legal expenses. To keep the price as low as possible, ask your broker to forgo special features. Regardless of whether you include any special features in your quote, you would still have to submit a contents list.
The cost would also depend on the amount of risk. The amount of risk would be determined through a shipping history of company. If the company has lost a significant number of goods while they were being transported, then the policy would get more expensive.