Things You Need to Know About Transit Insurance
If you transport goods from one place to another, you need proper transit insurance. Goods to be delivered are exposed to many risks during transportation. Goods might get damaged due to an accident. Someone can steal goods during transportation. Sometimes goods are lost. Goods in transit insurance are covered against such risks. Businesses deliver goods by land, rail, air and sea. You need marine transit insurance if you transport goods via sea.
Whether you are transporting goods by land, air or sea, having proper transit insurance is a legal requirement. It is important to understand that sometimes the safety of goods is not in the hands of the driver. For example, hail, winds, vandalism etc can damage the goods. One can hold the carrier responsible for damage or loss only when this happens due to the carrier’s negligence. Many businesses refuse to work with carriers who don’t carry the proper insurance.
This insurance covers the following:
- Theft of goods when the evidence shows that someone broke the door for forced entry.
- Theft of goods that were securely attached.
- Damage due to fire, water, vandalism, explosion or malicious damage.
- Hail, lightning, fire, storm, flooding, earthquakes and other natural disasters.
- Overturning vehicles
When it comes to choosing transit insurance, keep in mind that certain goods are not covered in this type of insurance. Your transit insurance may not cover paintings, antiques, spirits, wines, tobacco, jewellery, livestock, cigarettes etc. However, you have other options to cover goods that are not covered by your transit insurance.
Transit Insurance Cost
There are several factors that can increase or decrease the cost of insurance. The insurance company considers the following:
- Are you transporting household goods or commercial goods?
- Are you transporting by land, air, rail or sea?
- The distance to the destination.
- Do you want to cover on a single basis or an annual basis?
- What are the security measures in place?
Different insurance companies offer different products. If you want to get proper coverage and also want to save money, you can visit a website where you can compare quotes by different companies. Find one such website and share your requirements.