Frequently Asked Questions

1. What is Cargo Insurance?

Cargo insurance (or cargo transportation insurance) is the contract of a protection policy given to the goods and property of an owner. This insurance covers practically all major risks related to the cargo transported, whether by sea, land or air.

2. Who should hire Cargo Insurance?

There are specific insurance for the Shipper (responsible for the cargo), which are the National Transportation Insurance and the International Transport Insurance (import and export) and also the Civil Liability insurance, aimed at the Carrier (responsible for transportation), which vary for each professional, route and modal used.

3. What are the main coverages?

The main coverages are divided into basic (broad A modalities and restricted B or C) and additional, which are deployed in particular specifications for the different types of risk, cargo, route and merchandise, all defined by Susep.

4. Besides the value of the cargo, can you insure other items?

Yes. The other contracting modalities aim at other indemnifications regarding the value of the transportation if it is damaged or risks of its own nature that may cause damages to third parties. Also through additional coverages that involve risks of the most varied species, you can be exempt of charges of deductibles, taxes or other expenses.

5. Is Cargo Insurance required?

Yes. It guarantees the protection of equity as well as is required by government. Although there is optional insurance to cover the disappearance of the cargo, it can be seen as complementary insurance and also a guarantee against theft of cargo, including threats and violence.

6. How to calculate the value of Cargo Insurance?

For each need, an insurance with specific coverages, which consequently generate specific values. We at CredRisk Marine will soon provide an exclusive calculator on that will perform an estimate of values ​​for each demand to be evaluated.

7. What is the difference between Cargo Insurance and Ad Valorem?

Both are intended to protect the assets of the cargo being transported, but the Ad Valorem is a tax levied by national legislation based on the value of the merchandise. Aimed at carriers, who are also responsible for the merchandise, the fee applies when the shipper does not have insurance or the insurance used is not sufficient to ensure protection of all risks that may be involved during transportation. Either way the fee is required.

8. What are Incoterms?

These are the International Trade Terms and Conditions of Sale. They contain the duties and obligations of exporters and importers, where the provision of adequate insurance for the goods is a fundamental obligation. The use of Incoterms is a procedure to be followed and must be agreed between the parties in the international contract of sale of goods.

9. What is General Average?

The law of general average is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. That’s the reason why you should never venture to import without the good insurance.

10. In case of a claim, what documents should be submitted?

For the main modalities - broad coverage A and restricted C or B -, the National Superintendence of Private Insurance (Susep) provides a list of documents that can be consulted in this link.