If you’re just starting out in business, whether you are opening a restaurant, setting up a retail store or starting an online company, you’re learning a whole new set of skills and business terms. When it comes time to receive goods for your business or ship goods from your business, you’ll learn even more, such as door-to-door transport and consignment. Another shipping term to know is contingent cargo coverage insurance.
Who Does What
Think of contingent cargo coverage insurance as another level of auto insurance carried by most freight brokers. A freight broker is a type of middleman who matches shippers with carriers. Shippers are generally companies who produce or resale products, while carriers are companies who transport those products. Carriers are required to carry auto insurance, and cargo insurance is a must too, which covers loss or damage to a shipment. However, there are many events that are not covered.
Special Events Coverage
Events considered an act of God such as a hurricane, along with strikes, terrorist acts and more are covered through contingent cargo coverage insurance, which extends to incidents that belong in a class all their own. For example, it could cover the loss of an automobile that tumbles off a transport truck. If you’re the intended recipient of that car, whether as a consumer or an auto sales lot, wouldn’t it be nice to know it’s covered by your freight brokers insurance?