When we refer to insurances for the freight transport market, we can see they are of several types:
- carrier’s liability insurance
- vehicle insurance
- civil liability insurance of the shipping house
- CMR insurance
- accident insurance of individuals transported legally in the vehicle.
All these insurances cover a varied range of risks that can be generated by some unforeseen events occurred during a transport.
But what is important to know for the owner of the goods when deciding to conclude a transport contract?
About the insurance of goods during the transport, we have found over the years that things are a bit unclear: the idea is that if there is the CMR-type insurance of the carrier, then in case of unforeseen events that cause damage to the goods, their owner will of course be immediately compensated. However, in practice, it does not happen at all like this.
The CMR type insurance of the carrier compensates the partial or total destruction of the cargo transported if and only if it is proven this destruction was caused by the carrier’s fault, particularly that of the driver. This is however difficult to prove. If there is no report concluded by the Police where the aforementioned situation is noted down, the matter becomes debatable with regard to the insurance companies: they invoke various reasons, the most common one being that the cargo would have not been correctly packaged and it is thus the fault of the cargo supplier. And any compensation comes immediately out of the question.
In addition, the CMR insurance has a limited value and covers all the goods in the truck, between which it shares its value in case of damage.
About the CMR insurance, operating conditions and exceptions, you can read more in the article on this type of insurance.
There is also the liability insurance of the shipping house: It operates somewhat on the same principle, meaning it has to be proven that the damage of the goods was caused by the fault of the shipping company. It means it has not given the proper transport instructions (here, it must already be proven it has received them in its turn in writing from the customer, the latter having the possibility to specify in the contract section “Special instructions during the transport” if they want the goods to be anchored in straps and the desired number of straps, if they want the goods to be placed in a certain way in the truck and many more).
The only type of insurance that compensates the owner of the goods, regardless of what happened and without taking into account whose fault it is, is the cargo-type insurance of the goods. It works similarly to casco insurance for private cars, the owner of the goods is compensated without many questions, the insurer following to subsequently go to the other links in the transport chain in order to recover the damage.
This type of insurance is concluded by the owner of the goods or by the shipping company on behalf of the owner of goods and upon their express request. It is settled separately from the agreed transport rate, which includes only the CMR type insurance. The cargo insurance is calculated based on the invoice of the goods, as follows: the insurer levies a percentage of the invoice value, which may even start from 0.1%, depending on the nature of the goods being transported (e.g. it is one thing to transport pipes and another to carry glass items that have a much higher risk of damage during the transport).
About this type of insurance, about the operating conditions and its exceptions, you can read more details in the special blog article.
In conclusion, we mention that as a shipping company, we collaborate with the Gothaer insurance company and we can make available this service at preferential negotiated rates to those who want the conclusion of cargo policies for the goods transported.