Investing in a transit business means huge profit in less time. However, big profits come with big responsibilities that you cannot ignore. Transportation of goods involves a lot of risks that can be damage or loss due to any expected or expected reason. Not only loss and damage but later delivery is also one of the major issues why many investors hesitate to put money in the transit business. With the increasing number of potential risks, transport insurance policies came to existence. Just like any typical insurance policy, the insurance companies cover a lot of things that can put your business on risk. The major difference between transit and other insurance policies is their duration. Transport insurance remains valid for just a single journey. Every consignment involves different types of risks. For instance, livestock transport involves the risk of animal death or crippeling. On the other hand, machinery transportation involves the risk of damaging fragile parts. On the basis of risk factors, insurance companies classify transit insurance into multiple categories. Every person dealing in the transport business must be aware of these insurances. For your convenience, we are enlisting some important policies you may need most frequently.
Top 5 transport insurance policies
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Cargo insurance
This type of insurance policy is widely recommended for trips that involve transit through all means of transportation. The insurance covers damage and loss of goods during the transportation through roads, railways, airways and sea routes. Cargo insurances are usually meant for long journeys that can be within the country or continents.
2. Inland transport insurance
Each shipment is individually covered within this transport insurance policy. It means, the goods will be covered for or any damage or loss whether they are transported by their owl fleet or transferred to a subcontractor.
3. Marine insurance
As the name illustrates, marine insurance policy is specifically meant for cargoes that need to be shipped from one location to another through seaways. Water transportation involves different types of risks as compared to land transportation. Therefore, you need a different policy for handling every single issue from loading to unloading.
4. Land insurance
If you are going to transport goods through roadways with trucks or small vehicles, land transit insurance policy is enough to serve their purposes. This insurance provides risk coverage within the boundaries of a country. Damage due to vehicle collision, mishandling and theft are usually covered in land insurance policy.
5. International transportation insurance
While transporting goods from one country to another, many terms and conditions differ. It creates confusion when you buy an insurance policy. Therefore, International transit insurance comprises special clauses that are compatible according to the rules and regulations of different countries.
Every person involved in transit business must be aware of these insurance policies because mishaps can occur any time without giving any prior indication. Make sure that you have read all the terms and conditions carefully before buying an insurance. It must be providing full coverage against potential risks that usually happen during the journey.
