DETAILED GUIDE TO AIR CARGO INSURANCE

In the field of logistics and international trade, air freight is a fast and secure transportation method. However, it also comes with potential risks, such as loss, damage, or unexpected incidents during transit. To minimize financial losses and ensure protection, air cargo insurance has become an optimal choice for businesses and individuals. So, what is air cargo insurance, and what benefits does it offer to businesses? Let’s explore these details with Smart Link Logistics in the article below.

1. What is Air Cargo Insurance?

Air cargo insurance is a type of insurance designed to protect both shippers and consignees from risks that may arise during air transportation. This insurance guarantees compensation for loss or damage, providing businesses and individuals with peace of mind when engaging in international trade.

For high-value, fragile, or perishable goods, it is a crucial safeguard. In cases of loss, damage, or misplacement, the insurance company will provide compensation as per the terms of the insurance contract.

2. Who Should Purchase Air Cargo Insurance?

Import-export businesses: Companies that frequently transport goods internationally by air.
Logistics service providers: Companies handling freight forwarding and shipping that seek to protect cargo during transit.
Shippers and consignees: Individuals or organizations using air freight services to safeguard their assets.
Banks and financial institutions: Organizations that finance import-export activities and require insurance to protect their investments.

3. Benefits of Air Cargo Insurance

By purchasing air cargo insurance, businesses can enjoy numerous advantages, including:

Compensation for loss or damage caused by insured risks.
Reduction of financial losses in case of unforeseen incidents.
Enhanced security and credibility in international business transactions.
Fast and efficient handling of claims, minimizing disruptions in cargo delivery schedules.

4. Risks Covered by Air Cargo Insurance

Air cargo insurance provides coverage for losses due to:

Accidents occurring during transportation.
Fire, explosion, or natural disasters causing damage to the goods.
Theft or misplacement of cargo.
Unforeseen incidents that compromise the quality of the goods.

Cases Not Covered by Insurance

Some situations are not covered under air cargo insurance, including:

Damage resulting from improper packaging.
Natural shrinkage in weight or volume.
Losses due to delayed shipments.
Events related to war, strikes, or political unrest.
Damage caused by nuclear weapons or radiation exposure.

5. Air Cargo Insurance Coverage Period

Air cargo insurance coverage begins when the cargo leaves the warehouse or point of departure and ends when:

The cargo arrives at the destination specified in the insurance contract.
The cargo is temporarily stored, but not beyond 30 days from the time it is unloaded from the aircraft.
There is a change in destination, provided the insurance period is not extended beyond the original agreement.

6. Should You Purchase Air Cargo Insurance?

The answer is yes. Investing in air cargo insurance offers numerous important advantages:

Cargo Protection: Reduces the risk of loss or damage.
Financial Security: Ensures businesses do not suffer significant financial losses due to unexpected incidents.
Competitive Advantage: Insured businesses appear more reliable and trustworthy to their clients.
Efficient Risk Management: Enables swift issue resolution, preventing disruptions in business operations.

Conclusion

With extensive experience in logistics and international trade, Smart Link Logistics offers comprehensive air cargo insurance solutions to help businesses protect their assets and minimize risks.

If you’re looking for the best import-export solutions, feel free to contact us for detailed consultation. If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 14 years of experience in the transportation field, we are proud to accompany you throughout your journey.

Hotline: + 84 902 964 982 to know more about our services

If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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