There are several risks associated with not purchasing cargo insurance:
- Loss or damage to goods: If your goods are lost or damaged during transportation and you do not have cargo insurance, you may incur financial losses. These losses could be significant, especially if you are shipping valuable or specialized goods.
- Breach of contract: Your agreements with your buyers might require that you have cargo insurance.
- Reputational risk: If you are unable to deliver goods as promised due to loss or damage during transportation, you may damage your reputation with customers and partners. This could lead to lost business and revenue.
Cargo insurance can provide valuable protection for your business and give you peace of mind while your goods are in transit. The risks of not purchasing cargo insurance can be significant, and it is important to carefully consider the right level of cargo insurance for your business.
- What is cargo insurance & why do I need it?
- Why should I purchase cargo insurance instead of using my business' existing commercial insurance?
- What factors should you consider when deciding to purchase insurance either by a per shipment basis or an annual policy for your cargo shipments?
- What's the difference between cargo insurance and cargo liability insurance?
- How do you calculate Total Insurable/Insured Value (TIV)?