All Risk Insurance When Shipping
Updated: Jan 20
We understand that getting your freight where it needs to go in a safe and timely manner is of the utmost importance, but what happens when shipments do not go according to plan? This is where all-risk insurance can save the day.
What Is All-Risk Insurance?
Simply put, all-risk insurance also known as all risk cargo insurance is a broad type of comprehensive liability insurance.
It’s a safety blanket ensuring that if freight is mishandled (wear and tear), damaged, or in a worst-case scenario, lost, that the owner will be reimbursed not only for the value of merchandise loss or damage, but also for the freight charges being billed by the respective carrier that the freight was set to move with.
Does All-Risk Insurance Cost More?
It does, but not as much as you would think.
Imagine losing your entire shipment. How much would that set you back? How much would you expect to recover in the event of your shipment being lost or damaged?
In those situations the owner of the products lost will always have the right to file a claim with the insurance company.
The difference between all risk insurance claims and standard liability insurance is that all risk insurance will cover everything. Most standard forms of liability insurance services usually will specifically exclude reimbursement if they can prove that it was not their fault.
All risk insurance insures general merchandise, offering risk coverage for any physical losses or damage from ANY external cause. This is obviously subject to policy terms, conditions and exclusions, but it can make or break your shipment loss.
For example, a shipment moving with $10,000 of all-risk insurance may see an up-charge of $30 or less, but the resulting peace of mind could be worth far more than that.
What Does All-Risk Insurance Cover? | All Risk Cargo Insurance Coverage
As long as the correct total value of the shipment is accurate, all risk insurance will cover all costs. As stated above, if you elect to include all-risk insurance your freight charges as well as the full value of your shipment will be included in the reimbursement.
you can also cover up to 10% of possible incidentals, this cost just needs to be included in your shipment value
For shipments with a value of less than $10,000 there is a $0 deductible
How To Include All-Risk Insurance
When inputting your shipment, on the far right side of the page in the third box from the top it will say “Shipment Protection”. This is where you will input the value of your shipment and click on the “yes” bubble under the words ‘include protection’.
Just call into our office with your shipment information ready, including the shipment value, and mention that you want to use all-risk insurance and one of our operations team members will take care of the rest.