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By Rajkamal Rao
Go to The Move
Shippers offer many insurance choices - ranging from “All Risk” to “Movers Risk”. Insurance limitations might well dictate what type of shipping service you will ultimately select.
In an All Risk policy, your shipment is covered against all possible risks such as breakage, damage, theft, pilferage, part delivery, non-delivery including fire, earthquake, collision, accidents, etc. This is the platinum coverage option. A necessary precondition requires that goods be packed by the company that will ship the container. This makes sense - they pack, they insure the shipment. Premiums typically run 3 - 4% of shipment value for 0% deductible coverage - and the policy requires you to cover at least $10,000 in value.
Next down is “Total Risk”. In this policy, your shipment is covered only against named perils such as stranding, sinking, burning, collision, jettisoning of cargo, barratry or explosion. You would be entitled to the full insured amount only in the event that your entire shipment is lost. This means that if your 55 inch LED TV is damaged but the rest of your shipment still arrives as planned, you are out of luck. Premiums run 2 - 3% of shipment value. If you can bet that the probability of losing the entire shipment is rather low, buying the Total Risk policy makes little sense.
Last down is what is called “Movers Risk”. Here, the shipper’s liability for loss or damage to your goods or shipment is generally limited to a maximum of $ 0.60 per lb per article or package while the goods are in the shipper’s physical possession. If your TV weighs 70 lbs, the shipper will reimburse you a grand total of $42 for its loss!
So, if you must choose insurance the only policy which makes sense is the All Risk option - which requires you to engage either a full service shipper or hire a relocating company which acts as a full service shipper (by appointing its own packing and loading company).
Most shippers do not force you to choose your insurance option until load pick up day - the day the shipment is handed over to the shipper. This gives you some leeway in being able to put off your insurance decision until much later in the process.
Go to The Move
Shippers offer many insurance choices - ranging from “All Risk” to “Movers Risk”. Insurance limitations might well dictate what type of shipping service you will ultimately select.
In an All Risk policy, your shipment is covered against all possible risks such as breakage, damage, theft, pilferage, part delivery, non-delivery including fire, earthquake, collision, accidents, etc. This is the platinum coverage option. A necessary precondition requires that goods be packed by the company that will ship the container. This makes sense - they pack, they insure the shipment. Premiums typically run 3 - 4% of shipment value for 0% deductible coverage - and the policy requires you to cover at least $10,000 in value.
Next down is “Total Risk”. In this policy, your shipment is covered only against named perils such as stranding, sinking, burning, collision, jettisoning of cargo, barratry or explosion. You would be entitled to the full insured amount only in the event that your entire shipment is lost. This means that if your 55 inch LED TV is damaged but the rest of your shipment still arrives as planned, you are out of luck. Premiums run 2 - 3% of shipment value. If you can bet that the probability of losing the entire shipment is rather low, buying the Total Risk policy makes little sense.
Last down is what is called “Movers Risk”. Here, the shipper’s liability for loss or damage to your goods or shipment is generally limited to a maximum of $ 0.60 per lb per article or package while the goods are in the shipper’s physical possession. If your TV weighs 70 lbs, the shipper will reimburse you a grand total of $42 for its loss!
So, if you must choose insurance the only policy which makes sense is the All Risk option - which requires you to engage either a full service shipper or hire a relocating company which acts as a full service shipper (by appointing its own packing and loading company).
Most shippers do not force you to choose your insurance option until load pick up day - the day the shipment is handed over to the shipper. This gives you some leeway in being able to put off your insurance decision until much later in the process.
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