Transportation insurance

Cargo insurance is more important in international transportation than in domestic one. International carriers assume only limited liability for goods when shipping by air or sea. Terms of sale often make the seller responsible for the goods up to the point of delivery to the foreign buyer. For this reason, the buyer absolutely must have transportation insurance.

Marine transportation insurance protects both ocean and air-bound cargo. It also covers connecting land transportation. There are three main types:

Free of Particular Average (FPA) is the narrowest type of coverage. Total losses are covered, as well as partial losses at sea if the vessel sinks, burns or is stranded.

With Average (WA) offers greater protection from partial losses at sea.

All Risk is the most comprehensive, protecting against all physical loss or damage from external causes. In international transportation, it is important to remember that once the documents transferring title are delivered to the foreign buyer, the exporters are no longer liable for the goods.