Cargo Insurance

Why Insure?

“Insurance of cargo in transit is not compulsory in the UK – but most experts think it should be”

AutoBox Logistics takes the greatest of care in arranging the safe transport of customers’ cargo – but inevitably, from time to time, there is loss or damage during transit. The cause could be anything from:-

• a major vessel or aircraft casualty or a road traffic accident
• simple accidents during handling, loading or unloading
• ingress of water into a carrying container or road trailer
• theft (regretfully, despite the best precautions, it does happen)
• mis-direction and subsequent loss

The liability of carriers engaged by us (whether by road, air, sea or rail) for loss of or damage to cargo is always limited in monetary terms by standard contract terms or by legislation and, in some cases, liability is excluded absolutely. It is also a fact of life that claims against carriers, no matter how small, are very time consuming and difficult. For this reason, it really is vital that cargo insurance is arranged to cover goods in transit. This is so important that in some countries it is compulsory by law for freight forwarders and logistics companies to arrange cargo insurance for customers unless the customer forbids it in writing.

Cargo insurance is, quite simply, good business practice and yet, shockingly, in excess of 60% of goods exported from or imported into the UK are uninsured. Importers or exporters would not dream of not insuring their warehouse or stock or factory, office or motor vehicles – which makes it even more of a mystery that so much cargo is uninsured where the risks of loss or damage are even greater. The financial and trading impact on companies of loss or damage to uninsured cargo can be devastating.

Cargo Insurance

The cost of cargo insurance is very modest and AutoBox Logistics can arrange it for you simply and easily. For most cargoes the cover is “all risks” of physical loss or damage and is usually on a full “door to door” basis – even if we are not arranging the complete transit (for example even if we are only arranging the transport to port or airport in destination country). Cover can be arranged on individual consignment basis or, if you are a regular exporter or importer, you can give us a “blanket” instruction to arrange cover on all consignments. All you have to do is give us the instruction and we will do the rest. It will give you complete peace of mind. There are no “up front” charges to pay (the premium charge will simply be included with our freight invoice).