If You Are Transporting Goods, You Need to Have Cargo Insurance in Vancouver
by adminIf you are in the business of transporting cargo, you may be required to hold several types of insurance, depending on the type of cargo you are moving. However, even the most comprehensive Vancouver boat insurance will not cover lost or damaged cargo. Whether you are the vessel owner, or are simply having your merchandise transported, you must have cargo insurance in Vancouver to ensure you are fully protected.
Similar to having both automotive and business insurance when your require a vehicle for commercial purposes, when you own a boat that will be used to transport your own cargo you need both boat insurance, also known as hull and machinery or H&M insurance, as well as cargo insurance in Vancouver. Your Vancouver boat insurance is there to cover you in the event that damage is done to your vessel, it provides coverage:
- Against damage to your hull and machinery
- From legal liability
- Grounding
- Fire, explosion, tidal waves
- Accidents during loading/ unloading
However, H&M insurance does not protect the cargo against damage, theft, or loss. In order to be fully protected, if you are transporting goods you should also have cargo insurance. A typical cargo insurance policy will cover you from damages as a result of:
- Natural disaster
- Collison
- Piracy
- Missing cargo
- Customs rejection
This coverage extends not only over ocean travels, but also protects cargo during freight until it reaches its final destination. Land or sea, cargo insurance protects your assets from potentially overwhelming financial consequences. This type of coverage must be taken out by the owner of the cargo – if you own both the vessel and the cargo you will require multiple insurance products. Similarly, if you are a client having your cargo shipped by a third party, it is your responsibility to ensure that you have taken out cargo insurance, the transporting vessel’s insurance policy will not cover your cargo for loss or damage.
If you own or operate a small trade, import/export, or manufacturing business that includes the transportation of cargo over land or sea it is your responsibility to ensure that the goods are protected against all potential losses. No one plans for accidents to happen, but when you are dealing with significant volumes or expensive merchandise, the costs of loss or damage could be devastating. Don’t let an accident sink your business, make sure you are sufficiently covered for all your movements.