Expect the unexpected. Protect shipments while they’re in transit with cargo insurance.
Why choose Magaya Insurance Services for your cargo insurance?
Cargo insurance protects your business from loss or damage to cargo while it’s in transit. An important business insurance coverage, it safeguards you from the financial impact of any unforeseen events that may occur during the shipping process.
Get the personal attention you deserve. Our personalized policy review ensures you always have the best coverage at competitive rates.
Whether you need assistance with a claim or want to purchase a new policy, you can count on fast, attentive, concierge-level service.
INTEGRATED SELF-SERVICE PORTAL
Easily request your cargo insurance certificates in just a few clicks with an online self-service portal or email our expert agents. Declarations are generated and saved in your system.
With 20 years of experience serving shippers, beneficial cargo owners (BCOs), freight forwarders, and logistics service providers, the Magaya Insurance Services team truly understands the needs of the industry.
Types of Cargo Insurance
Cargo insurance policies provide varying levels of coverage to meet your budget and needs.
All Risk Coverage
The most popular coverage option, all-risk coverage protects the policy owner against a wide range of perils or risks that may result in loss or damage to the cargo.
Unlike named peril coverage, which only covers specific risks explicitly listed in the policy, all-risk coverage offers more extensive protection. It typically includes coverage for risks such as theft, damage from accidents or mishandling, fire, natural disasters, and other unforeseen events that may cause loss or damage to the cargo.
However, it’s important to note that the term “all-risk” does not mean that every conceivable risk is covered. There are usually certain exclusions and limitations specified in the policy. These exclusions may include intentional damage, inherent vice (inherent characteristics or qualities of the cargo that may cause its deterioration), improper packaging, delay, or loss of market.
Free of Particular Average (FPA) Insurance
Free of particular average (FPA) insurance is a type of marine cargo insurance that provides coverage for partial losses or damages to goods during transit. Specifically, FPA insurance covers losses caused by perils or accidents that are significant in nature, such as a ship sinking, grounding, or collision.
However, FPA insurance does not cover partial losses or damages that are considered minor, such as those resulting from ordinary wear and tear or inherent vice of the goods. The term “free of particular average” implies that the insurance only applies to losses exceeding a certain threshold or specific percentage, typically stated in the insurance policy.
Frequently Asked Questions About Magaya Cargo Insurance
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1. What is cargo insurance?
In short, cargo insurance is a type of business insurance that protects the certificate holder from loss or damage to cargo during transit.
2. Who needs cargo insurance?
Any business or individual engaged in storing or shipping cargo either locally or internationally should consider purchasing cargo insurance to protect their goods during transit.
3. Do freight forwarders need cargo insurance?
Freight forwarders are not required to have cargo insurance, but it is highly recommended. As intermediaries between shippers and carriers, freight forwarders play a critical role in the shipping process and, depending on contractual terms, may be held liable for any loss or damage to cargo that occurs during transit. Without cargo insurance, freight forwarders can find themselves financially responsible for any losses or damages that occur during the shipping process.
Additionally, having cargo insurance can provide peace of mind for both freight forwarders and their clients. It ensures that in the event of any unforeseen events such as accidents, theft, or natural disasters, the cargo is protected and any financial losses are covered.
Cargo insurance can also provide an additional revenue stream for freight forwarders as a margin can be added when offering coverage to clients.
Furthermore, some freight forwarders may require cargo insurance as part of their contract terms with their clients. This is particularly true for high-value or sensitive cargo shipments.
In summary, while cargo insurance is not required for freight forwarders, it is strongly recommended as it can protect them from financial liability and provide peace of mind for their clients.
4. What does cargo insurance cover?
Cargo insurance policies provide varying levels of coverage, but the most common type is “all-risk” insurance, which covers all risks of loss or damage to cargo during transit, except for any exclusions stated in the policy.
5. Are there any types of goods or regions you do not cover?
Shipping luxury, jewelry, breakbulk, perishable, alcohol, or dangerous goods? Magaya Insurance Services can insure a broad range of goods – far more than other insurers – with the most competitive rates and broad geographical limits. Contact us to discuss your specific needs.
6. How is cargo insurance purchased?
Cargo insurance can be purchased from Magaya Insurance Services by contacting us or using our online portal.
7. Is cargo insurance mandatory?
Cargo insurance is not mandatory, but it is highly recommended for businesses engaged in international trade to protect their shipments during transit.
8. How much does cargo insurance cost?
The cost of cargo insurance varies depending on factors such as the type of goods being shipped, the mode of transportation, and the destination. For a customized quote, contact us here.
9. What happens if cargo is lost or damaged during transit?
If cargo is lost or damaged during transit, the policyholder can file a claim to receive compensation for their losses or damages.
10. How long does cargo insurance coverage last?
The length of cargo insurance coverage varies depending on the policy and the terms agreed upon by the policyholder and the insurance provider.
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