“All-risk” cargo insurance is the broadest, most comprehensive form of coverage for cargo in transit. All-risk coverage costs approximately USD$0.45 per USD$100 of value and insures general merchandise against the risks of physical loss or damage from any external cause, subject to policy terms, conditions, and exclusions. The cargo is insured based on its value irrespective of its weight or piece count. Additionally, this can be door-to-door coverage.
No. Most freight carriers limit their liability to protect them from large payouts resulting from damaged or lost freight.
Carriers only pay compensation for loss or damage to goods if they are proven to be negligent. They are not responsible for losses outside their control in such cases as natural disasters, thefts, hijackings, and containers washed overboard.
In addition to carriers limiting their liability for the types of losses they will pay, they also limit the amount they have to pay. This amount varies by mode of transport and is based on the weight of the freight, not the value. Settlements with the freight carrier for liability are typically far lower than the actual value of the cargo. All-risk insurance has much broader terms and conditions and pays based on the value of the goods, not the weight.
“All-risk” means that if your freight is lost or damaged by an external cause during transit, your cargo will be covered, subject to policy limitations and exclusions.
The equation to determine how much approved claims against an all-risk insurance will pay is the following:invoice value + freight charges + taxes / duties incurred + an additional 10%.
All-risk policies typically exclude:
• The financial impact of a delay in transit.
• Damage caused by the cargo owner itself or its negligence.
• Loss or damage caused by packaging that is not fit for the chosen method of transit.
Rates vary by provider. For general merchandise, all-risk cargo insurance costs around UDS $0.45 per USD $100 of coverage. For example, insuring a shipment with a commercial value of $10,000 will cost $45.
The first step is to initiate a claim through a phone call or email to your insurance provider. The insurance provider will then guide you on how to file the claim. Most have online portals to guide you through the steps.
For most claims, you will be asked to provide: Document Type Examples Transportation document Bill of lading, truck bill, or air waybill Delivery receipt Signed proof of delivery, dropped trailer receipt, or receiving sheet Description of loss or damage incurred List of items, value, and circumstance Evidence of value Commercial invoice Evidence of damage Photos
That depends on the carrier. Carriers typically outline their limits of liability in their terms and conditions and on their bill of lading / contract of carriage. It is recommended that you contact your carrier or check your contract of carriage to confirm.
Yes. If you simply check a box while you’re booking your shipment and enter the commercial value of the goods, the Koho shipping platform will:
• Provide you with an instantaneous quote.
• Enable you to opt in for insurance that covers the replacement value of your goods.
Koho partners with Expeditors Cargo Insurance Brokers and its A+ rated insurance company, Zurich American Insurance.