Importing goods can give businesses an edge over local competitors because they can be cheaper compared to local products. Imports, however, need more than just payment and a shipping method. Proper documentation is one of the cornerstones of successful imports.
The documentation needed for imports differs between countries. One of the crucial ones a freight forwarder in the Philippines will help you is freight insurance. The insurance is crucial when you import goods because of the significant risks involved in the loading, storage, and transport of your cargo. Here are the freight insurance options you have.
This policy covers your cargo from damage from external elements and physical loss. There are several exclusions which will differ based on your insurer. The primary all-risk coverage should include acts of God, improper stowage of goods, deliberate destruction, jettison, theft and truck overturning.
FPA (Free of Particular Average) Insurance
This is sometimes called a named peril policy and lists the exact elements covered by the insurance. In most cases, theft isn’t covered by an FPA policy. Collision, burning, ship sinking, truck overturning, train derailment, stranding and a few acts of God are some of the elements covered in many insurance policies, but in FPA insurance, your shipper is only held liable for significant rather than minor cargo losses.
This policy is often for the carrier of your goods. In most cases, it excludes cargo loses due to a flaw in the transportation vessel, a criminal act, and acts of God or war. As such, it is cheaper but not as comprehensive as other policies.
Without an insurance certificate, your goods could be stuck in port. It might be challenging to pick the best choice for your cargo, but not with a freight forwarder. Choose forwarders who know which policy suits your goods and the management of the crucial documents needed for your cargo’s clearance.