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Insurance on Freight Shipping of Heavy Equipment

Posted on Thursday, June 18th by Pallet2ship logo

According to the law, it is mandatory that shippers in possession of a license provide insurance or take some kind of responsibility for all the shipments they manage. In other words, they must provide coverage for any kind of damage that might occur during their shipments. However, the spread of that coverage will vary from one shipping company to another, so you should address shipping companies about this specific aspect.

Always aim for high insurance

Indeed, low insurance is better than no insurance at all, whether it is shipments or anything else, but you should always try to aim for an insurance offer that matches the value of your cargo. Do not settle for just about anything. Also, it is equally important that you look into the kind of protection a particular insurance offer guarantees and then into the terms applicable in the event of a potential claim. Furthermore, you should know the exact range of damage covered by the insurance and make sure the suggested amounts are convenient for you. Should you consider them to be too small, you should ask the shipper whether you can purchase more insurance. Do not get discouraged if you are given a negative answer for you can still purchase additional insurance from a third party.

Contact your insurer about your current insurance, if any

Your heavy equipment may already be insured, in which case you should contact the insurance company in question and make enquiries about the level of damage covered by your current insurance agreement. It may not cover it entirely, but it is recommended that you inform the insurance company about your shipment. Thus, you can also learn the exact terms you have to meet in order for your insurance agreement to maintain its validity. In addition, you may be granted additional insurance at some highly convenient rates.

In the event of damage"¦

Should the heavy equipment you are having shipped suffer any damage in transit, the first strong recommendation is to write down the details related to the incident on the bill of lading. Once you have made the notes, make sure the driver in charge of delivering your cargo signs the document.

Both the shipping company and the insurance company should be notified on any damage to the equipment that might occur as soon as possible. You are most likely to find the shipping company very prompt in solving the problem for that would be in their best interest as well. Any complaints regarding the ways in which your problems have been addressed by the shipping company you have chosen to work with can be filed with any of the professional bodies it runs under. A first precaution to avoid such problems would be to think twice before partnering up with one shipping company or another. Once you have made your choice, your priority will be to prepare your heavy equipment or your cargo, whatever it may be, properly so as to ease the whole shipping process as much as possible.

If you need any further advice regarding your business insurance procedures contact today.

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