Freight insurance: Integral protection

The world of road freight transport is a vital part of the global economy. Every day, thousands of trucks travel the roads of Spain and beyond, transporting essential goods that keep our lives and businesses running. However, in this sector, unforeseen events can occur at any time, making freight insurance an essential part of any logistics company’s operation.

In this article, we will explore in depth what freight insurance is, the key principles behind it, why it is necessary, the cover it provides and who needs it.

What is freight insurance?

Freight insurance, also known as cargo insurance or transport insurance, is a policy designed to protect transported goods in the event of loss, damage or theft during transport from the point of origin to their final destination. These policies apply to different modes of transport, including trucks, trains, ships and aircraft, and can be tailored to the specific needs of each company and cargo.

Key principles of cargo insurance

To better understand the importance of cargo insurance, it is essential to know the key principles governing these contracts:

• Principle of liability: under this principle, the carrier is legally responsible for the goods from the moment the cargo is handed over for transport until its final delivery. This means that the carrier must do everything possible to ensure the safety of the cargo.
• Principle of limitation of liability: Despite the principle of liability, there is a legal limitation on the carrier’s liability in the event of loss of or damage to the cargo. This limitation is based on factors such as the weight of the cargo and the type of transport. Transport insurance helps to fill this gap and provides more comprehensive protection.

Why is freight insurance necessary?

Freight insurance is essential in the world of transport for a number of reasons:

• Financial protection: in the event of loss, damage or theft of goods, transport insurance will cover the costs associated with the loss, which can be especially important in the case of high-value goods.
• Legal compliance: In many cases, regulations and laws require freight transport companies to carry a minimum amount of cargo insurance to operate legally.
• Risk reduction: Freight insurance helps companies mitigate the financial risks associated with cargo loss or damage, allowing them to operate with greater peace of mind.
• Reputation maintenance: The ability to meet delivery commitments and ensure cargo security contributes to a positive reputation in the marketplace, which can be crucial to the long-term success of a transport company.

Coverage offered by freight insurance policies

Freight insurance policies can vary in terms of the specific coverages they offer. Some of the most common coverages include:

• Basic cover: this cover protects against loss or damage to cargo during transport. It covers events such as road accidents, fire, flood and theft.
• Carrier Liability Coverage: This coverage protects the carrier in the event the carrier is held legally responsible for loss or damage to cargo.
• General Liability Coverage: This coverage provides protection in the event of damage to third parties or property of others during transportation.
• Refrigerated Cargo Coverage: Specifically for perishable goods that require refrigeration during transportation.
• Environmental Damage Coverage: protects in the event of spills or leaks of hazardous substances during transport.
• Valuable Cargo Coverage: designed to protect high-value goods such as electronics or jewellery.
• International coverage: if you transport internationally, you can obtain specific coverages that are adapted to the needs and risks of these shipments.

Who needs freight insurance?

Freight insurance is necessary for various parties involved in the transport process:

• Transport companies: road, rail, sea or air transport companies need these insurances to protect their business and comply with legal regulations.
• Shippers and exporters: companies shipping goods should consider obtaining insurance to protect their cargo during transport.
• Importers: those importing goods should also consider transport insurance to protect their products from the place of origin to their final destination.
• Buyers and consignees: Cargo consignees can purchase insurance to ensure that, in the event of loss or damage, their investment is protected.

In the world of road freight transport, cargo security is paramount. Freight insurance is an essential part of the risk management strategy of any logistics company or entity involved in the transport of goods. They provide financial protection, comply with legal regulations and give peace of mind to all parties involved in the shipping process.

Ultimately, investing in freight insurance is an investment in the security and long-term success of your business in the competitive world of freight transport. If you want to know what coverage we offer at Conde Fernández Hermanos, do not hesitate to contact us, we will inform you without obligation!