What is transit insurance? Complete Best Guide and all details 2021

What is transit insurance?

Brief About Transit Insurance

Businesses are going global, thus goods are been sold all over the world. Globalization has not only increased the potential of business profits but also leads to multiple opportunities and competitive products.

While globalization has conquered the world and has expanded our businesses but the risk which is associated can’t be ignored. Yes, the risk of transporting your good from one place to another via land, water, air, etc they face a lot of threat of damages or losses due to unforeseen contingencies.

In case of any damage, the business has to lose a lot of money. That’s why it is important to protect your goods from the financial risk you need to buy a transit insurance plan.

What is Transit Insurance?

Transit Insurance is necessary to have so that you can secure your goods in transit from one place to another. It offers cover against damages and losses caused to your goods that are been carried from one place to another. It is the most useful plan for businesses so that you won’t face major losses.

The cost of the premium is decided on the basis of goods in transit insurance and risk that you (policyholder) is bearing during the policy term.

What is Covered Under Transit Insurance?

Transit insurance is a policy that includes compensation against the unavoidable perils that might cause damage to your goods during the time of transportation. These are the perils against, which transit insurance protects your goods are as follows:

  1. Explosion
  2. Lightening
  3. Fire
  4. Earthquakes
  5. Man-made or natural calamities
  6. Overturning of transport vessels
  7. Derailment of vessels
  8. Sinking of vessels
  9. Malicious damages
  10. Theft
  11. Accidental damages
  12. Risk at the time of unloading and loading of goods

Types of Transit Insurance

There are various types of transit insurance policies available that you can buy are listed below:

  1. Single transit
  2. Customized plan
  3. Open policy
  4. Overnight vehicles’ insurance policy
  5. Goods in transit through third-party carrier cover
  6. Goods in transit through own carrier cover
  7. Cover for multiple vehicles

Who Can Purchase a Transit Insurance?

Transit insurance can be issued to the following parties:

  1. Traders
  2. Manufacturers
  3. Aggregators/Transporters
  4. Importers/Exporters
  5. Custom House Agents

Conclusion: Transit Insurance

Transit insurance has become popular among most people. So, we have given you the relevant information regarding the plan. It is a necessary plan to get protection from unavoidable perils, which can arise due to transferring of your goods from one place to another.

For more, visit the category.

Leave a Comment