Do I Have To Insure My Shipment?

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If you're in the business of manufacturing or producing any products, you likely spend a good portion of your allocated expenses budget on insurance. It is simply too risky to try and operate in any field of business without insuring your business in every way that you can. Obviously, you will have insurance policies that will cover all of your goods while they are in your facility or store. But what about that strange grey area when your products are no longer in your possession, haven't yet been delivered, but are instead in the possession of your courier service.

You should always enter into a discussion with your courier company about the type of coverage that their shipping will automatically provide you. You might be surprised to realize that any courier company that accepts your shipment will have at least some insurance on your goods. They typically have to carry two types of insurance. The first will be on all their vehicles, and cover traffic accidents. The second type will cover any damage that happens to your packages.

There are a lot of things that can happen to your packages when they are out of your hands. A sudden storm can cause damage to a poorly packed shipment while it is being taken in or out of a building. Trucks can be stolen, and packages can be lost. Usually, the courier's insurance will cover all of these events, and more.

Sometimes though, a courier doesn't have enough insurance for your goods. You have to find out how much value is covered by their insurance. That is because sometimes you might need to purchase additional insurance to cover your goods to their total value. This could happen for example, if you were shipping extremely valuable goods in small packages. The normal insurance from the courier for the type of vehicle you are likely to be assigned probably wouldn't be enough to cover your goods.

Deciding whether or not you need extra insurance is usually a decision that is based on a measurement of risk vs. reward. Insurance is a cost to your business, and no cost should be undertaken without weighing the benefits. If for example, the coverage provided by the courier is only a small percentage less than the value of your goods, you will have to think longer about buying additional insurance. The cost of insurance might not be worth the small bit of added coverage.

About the Author:
Paul McDuffy is a consultant for ltl carriers and retail distribution companies as well as national courier service businesses.



Article Originally Published On: http://www.articlesnatch.com


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