In international trade, freight forwarders play a fundamental role: connecting cargo generators with a safe, efficient and reliable logistics operation. However, one of the most frequent mistakes in the logistics chain is to underestimate the importance of cargo insurance or treat it as a simple administrative requirement.
Correctly advising on a cargo insurance policy not only protects the cargo, but also protects the commercial relationship, the reputation of the freight forwarder and the continuity of the client's business. In this article we explain why international freight insurance should be a priority in your advisory and how to do it professionally.
The transport of goods - whether by sea, air or land - is exposed to multiple risks: theft, breakdowns, handling damage, accidents, weather events and operational errors.
When a cargo generator does not have adequate cargo insurance, the consequences can be serious:
Direct economic losses
Contractual disputes
Claims against the freight forwarder
Interruption of the logistics operation
A freight forwarder who advises well on insurance adds real value to his service.
One of the most common mistakes is to assume that the cargo is "already covered" by the carrier or shipping line; for this reason it is good to understand that:
The carrier's liability is limited by international conventions (CMR, Hague-Visby, Montreal, etc.).
The indemnity is usually much lower than the actual value of the cargo.
It does not cover all risks or all scenarios.
A well-structured international transport insurance policy, on the other hand, covers the actual declared value of the cargo:
Covers the actual declared value of the goods.
Protects door-to-door (subject to conditions).
Responds to real unforeseen events in international trade.
Today's market demands more than just freight quotes. Freight generators are looking for strategic allies who understand their operation and its risks.
Identify risks according to type of goods
Recommend the right type of cargo insurance policy.
Explain exclusions, deductibles and limits.
Anticipate loss scenarios
An agent who does not provide insurance advice leaves the client and himself exposed.
Not all insurance is the same. To advise correctly, it is key to know the basic elements:
Total and/or partial losses.
Theft and qualified theft with violence.
Damage during loading and unloading.
Climatic events.
General Breakdown.
Type of merchandise
Route and country of destination
Means of transport
Packaging
Claims history
The current context of international trade has increased risks:
Increased cargo theft on critical routes
Port congestion and increased handling
Extreme weather
Increased claims on certain commodities
Poorly structured cargo insurance can mean no coverage when it is needed most.
Involve insurance as early as the logistics quotation
Work with a broker specializing in cargo insurance
Do not assume standard coverages
Validate values, packaging and type of goods
Clearly explain scope and exclusions
At JAH Insurance Brokers, we work hand in hand with freight forwarders to turn insurance into a competitive advantage, not an afterthought. So ifyou are a freight broker and want to better advise your clients, we can help you structure cargo insurance policies aligned to the real risk of each operation.
Contact us and strengthen your logistics value proposition.