Cargo insurance refers to the coverage of your shipment against risks and physical damage or loss during the shipping caused by any sort of external entity while transporting via sea, land or air. This is also known as Freight insurance.
Types of cargo insurance provided by cargo insurance hong kong:
There are different types of insurance policies provided by cargo insurance company for transportation of goods via sea, air or land. This insurance falls under the category of floating policies or risk policy. It helps business to transport cargo such as merchandise, wares, goods, property etc. this policy covers protection of goods from the time they leave one warehouse till they reach other place of storage and complete transit in between.
Freight charges are to be payed for the cargo if the vessel is chartered then the money is paid for the vessel. If the goods are not safely transported then no freight amount is paid. There is a pre-paid freight too which is paid in advance and the cargo owner insures the value of the goods in the policy.
The ITC provides a disbursement warranty to the shipowner to effect in Conjugation and provide a 12 months insurance on the machinery and ship hulls too. There is a time insurance too for charters and freight and anticipated freight. If the ship is lost then it leads to loss of the profit earning capacity of the ship and ends all its freight contracts too. There are some insurance policies that are provided on a voyage basis too.