All You Need To Know About Transit Insurance

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calander February 01, 2022
calander Admin

How many of you think about what you will do, if your cargo gets damaged during the transit process. You might think it is normal, it is a part of the transit process something you have to accept and move on and your precious cargo item is done forever. But what if we told you that you can actually insure your cargo before you send it away. That is where transit insurance comes into play and it can be beneficial. Most of the well-established cargo and logistics providers provide transit insurance if your provider doesn’t skip them and move on to look for a new service provider. There is no need to have transit insurance if one doesn’t feel like it, one could decide not to take one, but if something happens to your cargo you are to blame yourself for the loss.

What Is Transit Insurance

Well, transit insurance functions just like normal insurance but for your cargo and parcels. If anything happens to your cargo, like dangers or it gets lost the insurance will cover it. With the ever-increasing cargo and logistics services, the number of cargo being loaded and dispatched every single day is increasing by huge numbers, along with the increased fleet size more delivery is possible. With more outbound packages comes an increased share of risk, there will be times when parcels get misplaced or due to mishandling will get damaged. During such situations, transit insurance comes into play.

What All Does Transit Insurance Cover

Now, during the transit process, the cargo moves from one location to another it may or may not be in the same country. So the weather factor also has to be taken in like earthquakes, heavy rainfall. Lightning, fire, the vehicle being overturned, it is a train then the derailment, damages during loading and unloading and theft. So, in short, transit insurance covers just about everything and makes sure that you get a respectful sum if your cargo gets damaged. If you are a regular logistics and cargo service user like a manufacturer or an exporter then taking up transit insurance is a must.

The Various Types Of Insurance

There are various types of transit insurance policies and it varies across the service providers.

1. Single Transit Policy

If you are not a frequent user of the cargo service and only transport items once a while, then this type of policy is for you. This type of insurance would cover only the one side journey of the cargo, that is to the destination. If it gets damaged you will get compensation. After the cargo is delivered and all checks are done the insurance time frame is over.

2. Marine Cargo Insurance

Marine cargo insurance covers both the cargo owners as well as the owner of the fleet. Marine cargo insurance is a must for every fleet you own, as you can be stress-free. Most of the time nothing happens, but if mother nature has any plans, then we are in for a rollercoaster ride. Marine transit insurance doesn’t cover any damages that happened due to packaging errors. Some service providers include air cargo transit insurance also with marine insurance, it is most often combined.

3. Land Cargo Transit Insurance

Now there are a lot of things that could go wrong for cargo being transported via road. The vehicle could overturn. It could get robbed or sabotaged during its night overhaul. So land cargo transit insurance covers everything that could go wrong and provides both the service provider and the cargo owners peace of mind.


Having transit insurance is always a good idea because we never what is going to happen, to the cargo that is. The weather can change at any time or anyone can sabotage the cargo. So, if you are a manufacturer or an exporter then there is no second thought, transit insurance is a must. Even if you are not a regular cargo and logistics user, having insurance for your precious cargo is always a good idea. If you want you can decide to opt-out and not take one, but having one will come in handy in certain situations.