On November 25, 2024, at 4:00 AM GMT+1, a cargo plane contracted by DHL crashed approximately one kilometre from Vilnius Airport, Lithuania.
The Swift Air cargo plane with four crew members on board and a shipment of goods was bound for Lithuania from Leipzig, Germany. The incident resulted in the death of one crew member, while the remaining three, including the pilot, survived the crash.
This is just one example of the many cargo plane crashes that happen yearly leading to the loss of lives and goods.
As a business involved in international shipping, protecting your shipments from unforeseen circumstances and incidents such as this should be a top priority. This is why Shipping Insurance is very important for every shipment.
How Does Shipping Insurance Protect Your Business?
1. Mitigating Financial Losses:
When goods are lost, damaged, or stolen during transit, it can lead to significant financial setbacks for your business.
Shipping Insurance serves as a safety measure to cover the cost of the entire goods if damaged while in transit.
This is why we always use shipping insurance for our clients especially if they are high-value or fragile items, where the replacement cost can be substantial.
2. Ensuring Business Continuity:
Uninsured shipping mishaps can disrupt your supply chain, delay deliveries, and strain your relationship with customers.
Shipping insurance helps maintain business continuity by providing financial compensation, allowing you to quickly reorder goods and meet customer expectations without major disruptions.
3. Protecting Reputation and Customer Trust:
Damage to the products or loss of products during transit will harm your reputation. This can lead to delayed deliveries as you have to invest additional time and resources to replace the damaged items if you lack shipping insurance. This can get customers frustrated.
Shipping insurance ensures that customers are promptly informed of the issue through the insurer, and the value of the damaged goods is reimbursed, allowing for a smoother resolution process.
How Much Is Shipping Insurance?
The cost of cargo insurance usually depends on the insurance provider and the value of the goods you are shipping.
Freight shipping insurance rate usually ranges from 3% - 10% of the shipment's total value, including the freight fee.
You can reach out to our experts to request the cost of insurance for your goods and we will assist with the calculations.
How To Get Shipping Insurance?
To get shipping protection for your cargo, there are two options available:
1. Carrier Insurance :
This shipping insurance is offered by shipping carriers like FedEx, UPS, USPS, etc.
2. Third-party insurance:
This is offered by third-party insurance providers specializing in shipping coverage like PINGAN insurance.
Although most shipping carriers offer their shipping insurance services, their policies often come with limitations, such as restricted coverage and capped reimbursement amounts.
This is why we recommend choosing third-party shipping insurance, which we also utilize for our clients. It offers greater flexibility and provides broader coverage options, making it better suited to meet diverse shipping requirements.
Additionally, third-party providers are often more cost-effective for businesses managing frequent or high-volume shipments.
Insure Your Shipment With SARA.
You can protect your business from financial setbacks caused by unexpected incidents, such as the recent cargo plane crash mentioned earlier by simply partnering with SARA.
At SARA, we have shipping experts with years of industry experience who can help you with all the paperwork and necessary processes to insure your shipments.
We also work with reliable and cost-effective insurance agencies with specialities in the supply chain industry.
Your goods are safe in our hands.
Comments
Please log in to leave a comment.