No matter how small the risk is, it's worth being prepared for something going wrong.

Even with the best-planned businesses, things can happen that are out of your control. It's not common and it's highly unlikely that something will go wrong, but any wise strategy has a back-up.

For transportation, that means being covered by freight insurance. Though all loads transported by Shamick Transport are covered by our Goods in Transit Insurance, there’s the option to buy extra coverage.

If you're still tossing up the benefits of buying freight insurance, take a look at our deep-dive below.

What Is Freight Insurance? 

Freight insurance is like any other type of insurance – it protects against any loss or damage, in this case, that could happen to your cargo during transportation.

Your insurance coverage may reimburse part or even the whole cost, if your freight is lost, damaged or even stolen while it is being transported.

The best plan is to choose a reliable haulage provider in the first place. These are the haulers who have experienced route planners and drivers, to avoid having a problem in the first place. Having said that, your best backup option is to have the peace of mind that comes with freight insurance.

Who Should Buy Freight Insurance?

You’ll want to consider purchasing your own freight insurance policy if you need freight regularly, over long distances, or to transport expensive goods and equipment.

A wide range of businesses stands to benefit from having a comprehensive freight insurance cover. For example, small- to medium-sized ecom businesses can ship vast numbers of products, while manufacturing businesses freight expensive equipment.

Freight insurance is a choice, rather than a legal requirement. Neither the haulage provider nor the freight customer is required by law to be covered by freight insurance. However, even though it's not essential, for many businesses, having freight insurance just makes sense.

It's not particularly expensive – especially when compared to the value of your goods or business that it's protecting.

What Kind of Freight Insurance Can I Get?

What kind of freight insurance you need will depend on the kind of coverage you require.

You can work with your haulage provider to develop your insurance plan, including what it does and doesn't cover as well as excess. At the end of the day, freight insurance is just the same as other types of insurance. It always serves of purpose of protecting your cargo and safeguarding your business.

Some broad categories that your freight insurance policy may fall into include: commercial vehicle liability; professional cover liability; coverage for abandoned cargo; and more.

How Much Does Freight Insurance Cost?

There's no straight answer here, unfortunately. The cost of your specific freight insurance policy will be based on a variety of criteria, since no insurance coverage is standardised. Factors to look at include what type of freight you are shipping, distance and frequency, and any history of losses.

The value of your goods will also be taken into account when determining the cost of your insurance, which makes sense, since the insurance covers the cost of what you are shipping. Usually, the value of the cargo is simply calculated as its commercial invoice value.

Which Insurance Company Do I Choose?  

When comparing insurance policies, keep in mind that your freight insurance is likely to only cover things that are outside of professional control. For example, a lot of insurance providers won't pay for damages caused by poor freight loading.

So, as well as choosing the right insurance company, you need to choose a reliable haulage provider to do the job well in the first place. Talk with Shamick Transport today about our freight services and insurance options.