What is Cargo Insurance?
Cargo insurance, freight insurance, or shipping insurance, is an insurance policy taken up to protect against loss of or damage to your goods while they are being transported.
The policy is meant to indemnify you if there is any loss or damage to your cargo. Cargo insurance would cover the goods while they are being transported over sea, air and land (includes parcel post and carryings by courier service).
Although the term “marine cargo insurance” is sometimes used, it actually includes cover for the land transit commencing from the moment the goods leave the storage until they arrive at the final warehouse.
What coverage is available?
All Risk – Covers against damage from physical, external cause including partial damage, theft and catastrophe.
Total loss – As the name suggests this policy covers against total loss/catastrophe of entire shipment.
How much cargo insurance do I need to buy?
The standard practice is to cover the invoice cost plus freight plus a percentage to cover the anticipated profit (normally 10% to 20% is adequate).
The largest shipment anticipated with the added freight and the percentage of advance added is normally the policy limit.
The shipments can be reported monthly to the company and billed at the end of each month, so unlike property policies, the cargo policy can be issued on a “pay-as-you-go” basis.
What is the difference between a single voyage policy and open cover?
Single Shipment or Open Policy:
This is the most popular form of shipping insurance cover. A Onetime Policy, as its name implies, offers coverage for a particular transit for which it is taken up.
It offers coverage from the time the cargo leaves the origin, while it is in transit and until it reaches the destination.
Open Cover:
An Open Cover is not an insurance policy. It is actually an agreement between the insured and the insurance company to insure all the shipments which fall within the terms and conditions agreed by both parties.
These terms and conditions which are agreed in advance include details of voyages, maximum value of cargoes carried in any one shipment, nature of cargo and packaging and rates applicable. The insured would then have to declare his shipments to the insurer on an individual or monthly basis.
As long as the details of the shipment comes within the terms and conditions of the open cover agreement, the shipment is automatically covered.
Why to purchase from Ramon?
Ramon International is the leading Freight Insurance provider and has grown to include a network of many well known companies nationwide and worldwide with recognition of the best customer service available in the market. We insure only via the world’s largest shipping insurance carriers A++ rated only.
Our Mission:
To deliver cost effective Freight Insurance rates in conjunction with superb customer service in order to achieve long term relationships with our clients.
Wholesale Rates Guaranteed!!!
Most efficient and cost effective Freight Insurance:
Providing Spot Insurance for all types of cargo up to $75M transported nationwide and worldwide all risk from door to door via electronic insurance certificate issued in minutes to your computer or issued at your office 24/7 via user name and password.
