Import Export Insurance: Here’s Why You Need It to Protect Your Cargo and Yourself

October 16, 2020

Our New Jersey insurance experts have been providing import and export solutions for decades.

What is Import Export Insurance?

Import export insurance covers all or part of the expenses resulting from losses or damage of cargo during transportation.  An open Marine Cargo policy covers various situations that may occur to cause damage to your goods in transit.  Some of the coverages include storms, mishandling by transportation personnel or refrigeration breakdowns in the case of perishable goods, even hijacking or pirates of the open seas.

Why Do You Need Import Export Insurance?

As an importer or exporter, you need an insurance policy for the following reasons:

  • Importing and exporting is high risk. When you’re transporting cargo in large quantities from one location to the other, there are a large number of risks  Once the cargo leaves the port or airport, it’s out of your control, but you would still be liable for any damage that occurs.  A comprehensive insurance policy will take most or all of that burden off of your company in the event of an incident and minimize financial damage. 

  • A customs bond is another form of insurance that will expedite the release of your cargo. Companies are often required to post a bond and/or cash deposit in order to release cargo.  The bond guarantees to the government that any taxes or import duty will be paid.

  • Property in transit may change ownership while in transit. The open cargo policy is designed to attach at that point when it is the insured’s responsibility.  Relying on the buyer or seller’s insurance policy comes with its pitfalls.  In the event that cargo is lost or damaged during shipping, you are left to represent yourself in the claim and may even have to deal with courts in a foreign country, which can be frustrating and time-consuming.  Having an import export insurance expert by your side will save your company time and money, and allow you to focus on daily operations without the financial hassle.

The team at David G. Sayles Insurance Services provides importing and exporting companies with comprehensive solutions to minimize their financial burden and everyday risk.  Contact us today at 1-800-439-0292 or insureme@dsayles.com for more information!

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insureme@dsayles.com
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