International transportation is a vital part of the global economy. Millions of goods cross borders daily, traveling from producer to consumer. And despite well-established logistics systems, any transportation is associated with certain risks: loss, damage, theft, delays, and force majeure can all lead to significant losses. To protect themselves from financial losses, companies and entrepreneurs use one of the most effective tools: cargo insurance. This is not just a formality, but a smart step toward reliable and responsible logistics.
If you need reliable protection against risks during international transportation, Dragon Logistics will be your reliable partner. We offer full coverage at all stages of delivery, prompt policy issuance, and assistance in the event of an insured event.
What is cargo insurance and what you need to know
Luggage insurance provides financial protection against loss, damage, or partial loss during transportation. It is usually issued as a separate agreement between the owner of the goods (or their representative) and the insurance company. If an insured event occurs, the client provides documents and receives compensation covering losses in accordance with the policy terms.
It’s important to understand that not all types of international cargo transportation automatically include insurance. In most cases, it’s an additional service that must be purchased separately. However, for a responsible cargo owner, it’s a wise investment, especially when transporting valuable, fragile, perishable, or unique goods.
Risks covered by insurance:
- damage to goods during an accident (mechanical damage, loss of marketability);
- theft, embezzlement, shortage;
- damage due to adverse weather conditions;
- damage during loading and unloading;
- total or partial loss in the event of a catastrophe (shipwreck, fire, railway accident).
There are two main types of insurance: all-risk and limited-risk. The first type covers a wide range of situations, while the second covers only specific cases. When choosing an insurance product, it’s important to carefully review the terms of the contract, the list of exclusions, the validity period, and the procedure for submitting compensation documents.
What determines the cost of cargo insurance?
The price of insurance is determined individually and depends on a number of factors. Key factors include:
- type of baggage – the higher the value of the goods or their susceptibility to damage, the higher the insurance rate;
- method of transportation;
- route, timeframe, and distance – the longer, more difficult, and more dangerous the route, the more expensive the insurance;
- packaging – poor packaging of products during delivery can lead to higher rates.
The stated product valuation, the availability of additional options, extended coverage, and the option of “no deductible insurance” (where compensation is paid on the first dollar of loss) also play a role.
Considering the advantages of insurance coverage in international logistics, it’s safe to say that it’s not just “just in case” insurance, but a real tool for protecting businesses from financial losses. Companies partnering with experienced logistics specialists and brokers receive more than just services; they also receive confidence in the safety of their deliveries.
By partnering with Dragon Logistics, you’ll receive a full range of turnkey logistics services. We work exclusively with trusted insurers. Our clients receive confidence in the safety of their goods, transparent terms, and professional support. Insurance coverage with Dragon Logistics is simple, cost-effective, and secure!