Protect your investment in your cargo. Importers and exporters are exposed to countless financial risks when they do not insure their international shipments. Trying to recover losses from carriers can be difficult and time consuming.

Avoid the risks of an uncovered loss. If your cargo is damaged or destroyed while in transit, your company would probably incur a financial loss unless proper insurance had been obtained. CACC’s "All-Risks" policy covers domestic and international shipments from the time the goods leave seller's premises until they reach the buyer's warehouse, subject to policy terms and conditions.

The best way to protect your financial interest is with "All-Risks" insurance coverage. "All-Risks" insurance relieves you of your financial exposure from physical loss or damage to your goods while in transit. Since carriers have limited liability - even on declared value shipments, to recover a loss from a carrier, shippers would have to:

• Prove the cause of the loss.
• Prove the loss occurred while the cargo was in the carrier's possession.

Exposure: You have no legal recourse against the air or ocean carrier if the goods are damaged during transit, before the air or ocean carrier takes possession of them. Prove the carrier is liable and directly caused the loss.

Exposure: You have no legal recourse against the carrier for losses caused by storms and other "acts of God". Avoid the risks of an uncovered loss.

In addition, even if you can prove liability, the amount you can recover from carriers on international shipments is limited to (with exception to declared value shipments):

• International Air Shipments $10.09 per LB. or $22.25 per Kilo
• Ocean shipments: US$500.00 per Customary Shipping Unit (CSU)

Avoid the risks of exporting without insurance. When selling goods under FOB, FAS, or C&F terms of sale, the buyer is responsible for loss or damage to the goods once they are loaded on the vessel. However, if goods are sold under an open account and the buyer failed to insure or properly insure the cargo, the buyer is less likely to pay the seller.

Under certain FOB, FCA, CFR, FAS, and C&F terms of sale, the seller may be responsible for loss or damage to the cargo until the cargo passes the ship's rail and is loaded on the vessel. Therefore, the seller may still need to secure cargo insurance for a portion of the voyage. With the buyer's insurance in effect for the period when the loss occurred, claims payment could be delayed. Contingency coverage is available for shippers to reduce the risk of non-payment from consignee insurance policies.

Since the additional cost for insuring warehouse to warehouse rather than just insuring warehouse to port is usually minimal, why not sell CIF and control the cargo insurance all the way to the final destination?

Even if the buyer has insurance, it may be inadequate and they or their insurance company may try to recover their loss from the exporter.

Avoid the risks of importing on Cost Insurance and Freight (CIF) terms. If your insurance coverage is with a foreign insurance company, your claims handling may be difficult and time consuming. Coverage conditions and restrictions may not be apparent as policies are written for the benefit of the underwriter, not the assured.

Your insurance cost may be hidden in the product and shipping charges. You may be paying more than you should. Your foreign insurance may not cover a general average deposit. Your foreign insurance may not provide warehouse-to-warehouse coverage. Protect your company by understanding your exposure.