The Cargo insurance selection process cannot ignore the legal obligations inherent to the transport operation.  However, the policy for this insurance can be much more robust and comprehensive, as the law merely stipulates the obligation to contract this insurance.  Several factors should be considered in this decision-making.   

Price, for example, is always a factor to be considered, but it should not be the only item to be taken into account. Below are the two main factors to be taken into account at the time of choosing your Cargo Insurance:

1. Goods to be transported and the logistics chain

For a more assertive selection of Cargo insurance, one should take into consideration the importance of the items to be transported, how these can affect the production chain, the replacement lead time in the case the items are lost, and the potential impact on the operation as a whole.

It is essential that the entire logistics chain be detailed and explained by the client, so that the broker has to hand the information required for analysis.  With basis on a detailed description of the operations, it will be necessary to check whether the proposals provided by the insurers support the various particularities of the logistics operation.  

Very often, it is necessary to adjust the proposals and tailor some clauses to meet the demands of a given client. Finally, it should be verified whether the conditions and covers offered are compatible with the requirements of the operation.  

Other very important aspects that should be considered in the analysis are Risk Management requirements and recommendations, as such have a direct impact on the costs involved.  

2. Broker with experience in this segment

From a technical standpoint, Cargo insurance is one of the most complex insurances. Therefore, it is essential that the consulting services be provided by an insurance broker with full experience in this segment.  

Differently from other types of insurance, transportation insurance requires interaction between the client and the broker throughout the 365 days of the insurance year. The insurance should be contracted by a company trusted by the client, as it will provide specialized consulting services for guidance concerning the products available in the market that are most appropriate to meet the shipper’s or carrier’s requirements. 

Added services, quality of service providers, loss payment deadlines, and the automatic and capacity features of the policies of the insurers that operate in this segment are factors equally relevant when selecting an insurer.   

Another important aspect to be evaluated is to determine if the products offered and the respective insurers are duly registered with SUSEP – Superintendence of Private Insurance, a self-governed body, which reports to the Ministry of Finance, and is responsible for the regulation and supervision of the insurance segment. Make sure that the insurer chosen is a company with tradition in the market, and counts on a specialized team to meet the specific demands of your activity.    

CredRisk Marine is an independent insurance broker focused on providing specialized solutions for the supply chain. Our field of operation encompasses all transportation insurances involving the logistics chain. How does this work? We use several major insurers, and conduct a thorough analysis to obtain the best proposal for you. Find out more.