Protect Your Supply Chain with Cargo Insurance by TLC Logistics
Cargo insurance is a critical step in safeguarding your supply chain. It protects your financial investment during both domestic and international transit. While in transit, cargo can be vulnerable to risks such as natural disasters, severe weather, theft, pilferage, damage, fire, and other unforeseen challenges.
High-Value, High-Risk, and Used Equipment Insurance
In addition to standard cargo insurance, TLC Logistics recommends additional coverage for High-Value, High-Risk, or Used Equipment and Machinery. But what defines these categories?
High-Value Cargo
High-value cargo includes any domestic shipment valued over $100,000 (truckload) or more than $28 per pound per package (LTL). For international shipments, high-value designations depend on the terms and conditions noted on the back of the carrier’s ocean bill of lading.
High-Risk Cargo
High-risk cargo includes items frequently targeted for theft, such as electronics, precious metals, pharmaceuticals, liquor, apparel, cosmetics, and appliances. It also covers temperature-sensitive or fragile products like chocolate, soft fruit, glass panes, and eggs, which are more prone to damage if not handled properly. Factors such as specific routes, shipping timeframes, and destination countries can also increase risk.
Used Equipment or Machinery
This category includes any cargo that is no longer new, including reconditioned, refurbished, or rebuilt equipment and machinery.
Truckload Cargo Insurance
For truckload shipments valued over $100,000, notify the carrier and TLC Logistics in advance, as carriers are only liable for up to $100,000. For shipments exceeding this threshold, we can help arrange supplemental cargo insurance to cover additional value.
Less-Than-Truckload (LTL) Cargo Insurance
Understanding the NMFC (National Motor Freight Classification) class is crucial when considering additional LTL insurance, as it often determines the carrier’s liability in case of damage or loss. TLC Logistics works with you to understand these thresholds and ensure adequate coverage.
Liability Coverage
TLC Logistics negotiates higher liability standards, offering coverage of $28 per pound per package, up to $100,000 per shipment, regardless of class, for most preferred carriers. However, typical liability for Used Equipment/Machinery ranges from $0.10 to $1.00 per pound, making additional coverage advisable.
International Cargo Insurance
Similar to domestic coverage, additional insurance is recommended for international cargo. TLC Logistics can help secure coverage and manage the necessary paperwork well in advance of shipment. For high-value international shipments, distributing cargo across multiple sailings can minimize risk. Understanding the insurance responsibilities in Incoterms and terms of sale is crucial for international shipping.
General Average
International shippers should also be aware of the law of General Average, which can impact the distribution of loss among cargo owners.
Comprehensive Cargo Insurance with TLC Logistics
No matter the mode of transportation, route, or type of product, it’s essential to work closely with your carrier, TLC Logistics, and insurance underwriters to ensure your cargo is fully protected. Contact TLC Logistics to learn more about our cargo insurance solutions and how we can help protect your shipments.