Every business owner knows that their business benefits from the coverage and protection insurance provides. While specific insurance coverage needs will vary from business to business, general liability insurance, and worker’s comp policies are pretty standard. For any business involved in shipping goods to customers, shipping insurance is another type of insurance worth looking into.
Prevent Financial Losses
Businesses need to be able to manage their cash flow to be profitable. To do so, they need to be able to control expenses while maximizing income. The nature of the shipping process leads to some packages becoming lost, damaged, or even stolen, which can eat into a business’s profits. The policy reimburses you based on the declared value of the shipment. This protects you from incurring significant financial losses that can happen if you ship a significant number of packages or expensive items.
Protect Fragile Items
Shipping is anything but a delicate process. The people involved in the process don’t intend to break things they ship, but with huge volumes of packages to get from one place to another and deadlines that have to be met, they don’t always have the time to handle every package with the care it needs. Inevitably, some shipments will become damaged in the process. You need to take steps to protect any valuable, fragile items you ship. Protecting valuables can be especially important when you have an oversized load. Oversized loads can be especially rough on packages since more boxes can knock into one another or fall on each other. Shipping insurance can help you guarantee the safe arrival of fragile items without eating too much into your profits if you have to replace items that broke during transit.
Did you know that if you ship overseas, you could be partially liable for any damage that happens to a carrier? The general average rule explains that all customers transporting goods share liability if the cargo ship becomes damaged or any goods end up being lost at sea. It has the potential to cost your business thousands, if not millions if you’re not covered by insurance. Make sure you read through your policy very carefully so you know exactly what is covered and what isn’t.
Shipping insurance is well worth considering for any business that makes a lot of money shipping products to customers. It can help protect against financial losses, protect fragile items, and protect you from unexpected liabilities when shipping things internationally. Take some time to research your shipping insurance options so you can make sure your business is protected.
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