What you need to know about cargo insurance

The market has grown significantly, hasn't it? Just look at the increase in product transportation to attest to this. A conscious measure in this case is to ensure good cargo insurance.

In this article, you will find a good opportunity to improve your logistics management and gain more confidence to control the increase in customer demand and the company.

Find out now what cargo insurance is, how it works, and why you should get it. Learn about the main types and the most important points about the subject!

How does cargo insurance work?

Cargo insurance can be purchased in several different ways. Each option varies in coverage, protection, and different types of cargo. Decree 61,867 defines that both the cargo owner and the carrier must have property insurance and transport liability insurance, respectively.

Compensation is paid within 30 days, starting from the date the policy documentation is submitted to the insurer. The coverage only applies to transported goods and is different from truck insurance.

According to the Fecomercio, almost 100,000 cargo thefts were recorded in the country between 2012 and 2017. This data reinforces the importance of taking out insurance to guarantee the transportation of your products.

It's crucial for managers to understand the different types of insurance they choose to purchase correctly. We'll learn more about this in the next section.

What is cargo insurance?

Cargo insurance is a service with mandatory and optional plans to protect goods and merchandise during road, rail, air, and water transportation. This transportation can be carried out by private fleets, independent carriers, or specialized companies.

With domestic insurance, the policy can be purchased individually or as an open plan, covering multiple trips using different modes of transportation. International insurance covers foreign trade transactions.

National transportation insurance is mandatory, offering coverage throughout Brazil. Learn more about some of the main insurance options.

RCT-VI

Abbreviation for International Road Carrier Liability Insurance. This model covers international territory and protects cargo from the beginning of the journey to its end in another country.

RCTR-C

Abbreviation for Road Cargo Carrier Civil Liability. This type of liability is mandatory for all carriers registered with the RNTRC (National Register of Road Cargo Carriers). The objective is to protect against product damage in the event of accidents.

RCF-DC

Abbreviation for Optional Civil Liability of Road Carriers for Missing Cargo. This option, as the name suggests, is optional and relates to the contractor's liability.

How important is it to take out insurance for your cargo?

First, your company must comply with the law to avoid legal issues. Therefore, all mandatory modalities must be contracted. Next, we emphasize the guarantee, reliability, and integrity of the products transported to the customers.

We've reached the end of our article. It gave us a better understanding of how cargo insurance works, its different types, and why you should purchase it. security in logistics is an important aspect to be improved with this knowledge.

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