Goods In Transit Insurance
The United Kingdom insurance industry is well known for being highly regulated, and the benefits of goods in transit insurance will usually help a company weave their way through all the rules and regulations that apply. Goods in transit insurance will usually cover any damage or loss of goods whilst being transported by air, sea or land. For example, with this insurance, a transit company owner will have better control over the many risks involved in this tightly controlled industry. Having this type of insurance will usually give a company an edge over competitors that do not carry goods in transit insurance, and foreign buyers will usually require this insurance because it is relatively inexpensive in the United Kingdom.
Goods in Transit Cover
Any job that involves transporting goods from one place to various
places whilst in transit faces many dangers including losses. Items can
go missing or break whilst in transit, and the buyer waiting on the
other end can be more than annoyed should his goods be missing or
damaged upon arrival. Goods in transit cover will usually offer the best
protection from some instances and incidents that simply cannot be
avoided. Without this cover, a transport company could face devastating
expenses that could put it out of business.
Summary of Cover
A goods in transit policy will usually cover:
How Goods In Transit Policies Work
Insurer and client will need to value and agree on goods worth. Goods in
transit insurance will not usually offer protection if goods are
inferior, damaged because of poor packaging or below standard. Usually,
two types of cover are available. They are old for new with items
replaced at current market value, or indemnity cover, whereby the
insurer will account for general depreciation. Old for new cover is more
expensive to purchase, and buyers should make sure that when valuing
contents they quote a replacement rather than an actual value.
Standard trade codes for international contracts are incoterms, which delineate cost obligations for importer and exporter, defining what party needs to purchase cover. This insurance obligation is minimal. If more cover is necessary, negotiate with your insurer.
Export Goods In Transit
Exporters will usually set up freight and insurance and pass the fees on to a buyer. A company will charge the client for fees for goods and for freight and insurance to the airport or port of choice. Should a transport company place the responsibility of purchasing insurance on the buyer, it is usually done before good are paid for. Therefore, a transporter may not collect full fees should a problem arise and the transporter does not have insurance protection. Also, should goods be rejected at the customer's site or port of entry, there is no insurance cover; hence, the responsibility will fall back on the transporter's company.
Import In Transit Insurance
To minimise risks, a transporter should have goods in transit insurance
of imported goods. That way, the transporter knows what is included and
what is being paid for. The supplier you are working with may not
provide full details of their insurance cover, or the information might
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