Freight Insurance - Is It Worth It?

Modern freight management solutions, as well as transportation methods, have greatly revolutionised the way in which business is done all over Australia. Today it is much easier, safer and more convenient to order goods abroad or from far away destinations, or to get your products shipped or delivered to about any destination imaginable. The freight systems today are incredibly fast, reliable and trustworthy which brings us to one of the most frequently asked questions; is freight insurance worth it?

What exactly is freight insurance?

Freight insurance isn’t much different from any other type of insurance. You can take out insurance on your cargo up to a value or on the full value of your cargo. If something happens on the journey and your cargo is damaged, lost or stolen then the insurance company will compensate you with the full amount for which the cargo was insured. Freight insurance is commonly used by plenty of businesses all over Australia but this type of insurance is not cheap. The expense of freight insurance and the reliability of modern transportation channels make plenty of people question whether it really is worth getting your cargo insured.

First, consider the risks

There is always a risk when you are sending a load of products through your supply chains. Here are the top risks you need to consider before you decide to bail out on freight insurance;

Packaging errors – Products are frequently loaded and transferred between different carriers and the roads are often filled with plenty of unexpected curves and bumps. The right type of packaging is critical for shipping just about any product and especially for sensitive and particularly expensive products. If your packaging team does fail or if you don’t have the right packaging then your entire shipment could be at great risk.

Accident risks – Roads are dangerous, we all know this. Australia’s cities are frequently hustling and bustling and navigating through the heavy traffic can be a nightmare. Road accidents pose the biggest risk when your goods are being transported.

Lost Goods - Packages can easily get shipped off to the wrong destination or get lost when you are using combined shipping solutions.

Delayed services – Plenty of things can affect the functionality of your goods in transition. Road accidents, blocked roads and weather conditions, breakdowns much more can delay your shipment. While this isn’t a huge problem for some businesses, the losses can be significant for those with time-sensitive products such as the case with produce.

Natural disasters – Natural disasters such as heavy rains and flooding can also pose a huge risk for your shipment since roads are much more dangerous to travel and shipments are often delayed in order to avoid risk to the cargo.

Now consider the insurance rate

Freight insurance can be expensive, especially if your products are valuable or when you are sending a rather large shipment. But freight insurance certainly doesn’t come close to the value of your entire shipment.

Is it worth the risk?

There are many businesses that skip out on insurance to save money. Modern freight solutions are, after all, much safer. But when you do decide to skip the freight insurance you should follow the right rule of thumb by ensuring that you use the right packaging, by ensuring that your packaging is done right and secure, by marking your goods properly and correctly and by using a secure freight broker. Freight broker Australia has been providing freight services for over 30 years. We have positive relationships with all of the best carriers. You have the option to insure your freight up to different value amounts, and we only use trusted carriers with a good service and a history of low damages and losses. With Freight Broker Australia we don’t take any chances on your products so your business an function as stable as possible.