Shipping Insurance Do You Need It?
When was the last time your business shipped something of value to a partner, vendor or customer?
It’s true that some businesses do very little shipping while others depend on product shipping for survival. If your business is the latter, or somewhere in between, guaranteeing that your shipment arrives in good condition is essential.
But sometimes things happen, and the result is a shipment that arrives damaged or doesn’t arrive at all, leaving the business owner scrambling to determine what to do. Then comes the question of responsibilityspecifically, what happened during the shipping process that caused your product to become damaged or lost? And will the shipping company compensate for the damage through its insurance?
There are many ways to insure shipments, and a conversation with your insurance agent or broker can help determine if your company should carry that particular coverage. Make sure your contract with the transfer agent provides details that bind parties to loss liability. To help decide if a separate shipping insurance policy is desirable, review the coverage offered by the shipping company. Then, review your coverage to make sure your cargo in transit has appropriate protection.
Reprinted with permission, The Mines Press Inc.