When shipping goods internationally, whether personal effects or vehicles, insurance often feels like an optional extra. However, shipping goods across borders involves numerous complexities and risks. From unpredictable weather to handling errors or customs delays, many factors are beyond your control. That’s where insurance comes into play. While it might be tempting to cut costs by skipping insurance, the potential financial and emotional fallout from a damaged or lost shipment can far outweigh the premium you would pay. Here’s why insurance matters, what it covers, and why you should still prepare for the unexpected.
Shipping Is Safe, But It’s Always Best to Be Prepared
While international shipping is generally safe, the long distances and multiple handoffs between carriers increase the risk of something going wrong. Preparing for these potential setbacks is crucial to ensuring your goods arrive safely. Although delays are typically just a nuisance, the cost of damage or loss can be substantial without insurance.
By securing comprehensive insurance coverage, you protect yourself against these costly scenarios. Even if delays occur, you’ll have peace of mind knowing your goods are financially protected from the more serious risks.
What Does “Shipping at Your Own Risk” Really Mean?
When you ship internationally, you are essentially accepting responsibility for what happens to your goods during transit. While carriers take precautions, there are risks beyond anyone’s control, including:
- Theft or Pilferage: Goods can be stolen during transport, especially at ports and during handling.
- Damage During Transit: Items can be damaged by rough seas, mishandling, or accidents while being transported by air, land, or sea.
- Loss of Goods: In rare cases, entire shipments can be lost due to accidents or misrouting.
If you don’t have insurance, shipping at your own risk means that if any of these events occur, you bear the full financial responsibility for repairing or replacing the goods.
What Does Insurance Cover?
Shipping insurance provides protection against a variety of risks that can occur during international transit. These include damage to goods, loss, or theft while your items are being transported by air, sea, or land. Whether you’re shipping personal effects or high-value items like vehicles, insurance is an essential safeguard to protect against potential financial losses that might arise from unforeseen events.
However, it’s important to note that shipping insurance does not cover delays. If your shipment is held up in customs or experiences logistical delays, insurance won’t reimburse you for the inconvenience. Its primary function is to cover physical damage or loss of your goods.
Insurance at World Cargo
At World Cargo, we work with ANOVA, a third-party insurance provider, to offer you comprehensive shipping insurance options. ANOVA specializes in providing coverage tailored to international shipments, ensuring that your goods are protected from the moment they leave our hands to their final destination. By partnering with ANOVA, we ensure that our clients have access to a range of policies that meet their unique shipping needs.
We offer several types of insurance policies through ANOVA, each providing varying levels of coverage.
Below is a table summarizing the coverage for each of these policies:
| Policy | Coverage Type | Events Covered | Exclusions |
|---|---|---|---|
| ICC-A (All-Risks) | Comprehensive “all-risks” coverage for most perils during transit. | Fire, theft, loss, accidents at sea, rough handling, weather damage. | War, strikes, improper packaging, inherent vice, delays. |
| ICC-B (Named Perils) | Partial coverage with protection for specific named perils. | Fire, vessel sinking or capsizing, collision, overturning, general average. | Theft, pilferage, minor damage, war, strikes, delays. |
| ICC-C (Total Loss) | Covers total loss only, no coverage for partial damage. | Vessel sinking, collision, overturning, derailment. | Partial loss, theft, minor damage, war, strikes, delays. |
| Total Loss Plus | Custom ANOVA coverage for total loss and certain perils. | Total loss, theft, pilferage, fire, water damage. | Minor damage, improper packaging, delays. |
| Personal Effects & Household Goods Special Conditions | Special coverage for personal effects and household goods. | Damage or loss during transit, if professionally packed. | Fragile items, high-value goods (without prior approval), improper packing. |
| Specialized Cargo Policies | Custom coverage for specific goods (e.g., frozen food, hazardous materials). | Breakdown of refrigeration (for frozen food), temperature control issues. | Unapproved packaging, war, strikes, delays. |
It’s important to note that insurance coverage is subject to the nature of the goods being shipped and ANOVA’s approval. Certain items may not be eligible for all types of coverage, and some may require specific conditions or additional steps to ensure proper protection. Before shipping, it’s always a good idea to consult with our team to ensure that the appropriate coverage is available for your specific goods. We’ll work with ANOVA to verify eligibility and provide you with the best possible insurance options for your shipment.
How to Reduce Risks When Shipping Internationally
Even though you can’t control every part of the shipping process, there are steps you can take to minimize risk and protect your shipment:
- Work with an Experienced Shipping Company: Choosing a reliable and experienced freight forwarder or shipping company is one of the most important steps. These companies have established networks and protocols for handling goods, ensuring they are transported safely and efficiently. Their experience reduces the risk of mishandling, theft, or misrouting.
- Use Secure and Proper Packaging: The way your goods are packed can make a huge difference in preventing damage. Use high-quality materials like reinforced boxes, crates, and bubble wrap. Fragile items should be cushioned with protective padding, while heavier goods should be secured with strong, durable containers. If you’re shipping a vehicle, ensure it is securely fastened in a container or on a platform to prevent shifting during transport. For high-value goods, consider tamper-proof seals or specialized packaging to deter theft.
- Label and Document Properly: Clear, accurate labeling of your goods, including destination addresses and contents, helps reduce the risk of misrouting or customs delays. Additionally, ensure all necessary documentation is in order to avoid complications at customs, which could lead to costly delays or storage fees.
- Insure High-Value Shipments: For valuable personal effects or vehicles, insurance is essential. Although it won’t cover delays, it will compensate for loss or damage to your shipment, giving you peace of mind throughout the process.
Mitigate Risk and Protect Your Shipment
Shipping internationally always carries some risk, and without insurance, you’re fully responsible for any damage, loss, or theft that may occur. While shipping companies do their best to ensure safe transit, unexpected events can happen. Insurance doesn’t cover delays, but it protects your shipment from the more serious financial losses associated with damage or theft.
By working with an experienced shipping company, using secure packaging, and ensuring proper documentation, you can reduce risks and increase the chances of a smooth shipping experience. At the same time, securing insurance provides a valuable safety net, ensuring that even if something does go wrong, you’re not left to bear the full financial burden alone.
