Types of Transport or Cargo Insurance in USA
Transport insurance is used when transporting goods from one place to another, often internationally. Because the nature of this insurance requires the cooperation of different states in USA or other countries, it is very difficult to regulate and standardize. Although policies vary among countries, insurance companies, and types of shipments, basic transportation insurance can be classified into a few categories in USA.
In general, the transport of cargo made by land will be insured with some truck transport insurance in America. This type of policy offers coverage against theft while the truck is unattended, against damage due to collisions and other contingencies.
International transport is generally by sea, and sometimes by air. This type of shipments are insured by an insurance for maritime transport, which offers coverage against damage caused in the loading or unloading of the ship, weather damage, piracy and other contingencies.
Open Position Policies
Within the broad categories of land and marine insurance in USA there are different types of policies. One of the most common is the so-called open position policy, or open policy. These policies insure the declared value of the transport or provide coverage for a period of time, or both, and do not specify the type of cargo, vessel or destination. Policies are frequently used by exporters who have large volumes of operations.
Sometimes it is necessary to obtain an insurance policy with more specific terms than the one provided by an open policy in United States of America. A travel policy is designed to protect certain goods transported during a given trip from a specific origin to a specific destination. Once the trip has been completed, the policy expires and a new policy must be issued for subsequent trips.
Shipping Contingency Policies
Shipment contingency policies serve as secondary insurance for situations where the primary insurance is not activated. For example, an exporter in USA may send merchandise to your customer, an importer, who decides to accept responsibility for the goods until they arrive. For any reason, you may refuse delivery or the goods may be damaged during the journey, refusing to fulfill your responsibility. A contingency policy will pay for this type of loss, where the responsible party refuses to comply with its responsibility and makes you liable in its place. Contingency policies may also be activated in the event the claim made by the primary insurance is denied.