As in the case of other classes of insurance, transport cover makes a distinction between ownership and possession. Ownership is protected via material damage insurance, possession via liability insurance.
Transport operators are not always aware of the value of the goods being transported. Nor do they know what liability they are assuming through the transport agreement. The law provides various limits on financial liability by way of CMR conventions. CMR conventions reimburse the damage incurred according to the weight (roughly €10 per kilogram) and not according to the actual value of the merchandise. If your company makes ultra-light but costly computer chips, you will not receive any compensation for the damage suffered.
In the event of damage during transport, it is not at all easy deciding which parties are liable so that your company may have to wait for a long time before being reimbursed for the damage incurred. Goods insurance offers your company further financial protection against transport risks.
Your goods lose their value in transit in the case of damage or theft. Costs are incurred to prevent impending damage or to limit damage that has already occurred. It might also be a question of vessel, freight or cargo maintenance costs (general average). Not to mention the risks for your merchandise in the event of strikes or the risk of war. Goods insurance covers all in-transit costs, including loading and unloading. It takes account of the type of transport, the packaging and the type of merchandise due to be transported and the destinations.
Two types of goods insurance
1. A goods insurance policy is taken out according to the chosen terms and conditions of delivery or Incoterm.
If you transport goods only occasionally, it is reasonable to take out insurance on a per-shipment basis, opting for a one-off or optional policy.
2. A selected-transactions policy is a better alternative if you transport goods regularly. You may choose between a turnover policy or a declaration policy.
ADD has developed a selected-transactions policy with specific clauses. Apart from the extensive insurance conditions companies also have opportunities for:
- trade fairs/exhibitions;
- contingency insurance ( insurance in the interests of the purchaser, in the interests of the seller)
- storage, even in their own storage facilities, plants, …
- participation in the favourable outcome of the selected-transactions policy