What Is Transportation Insurance?

Transportation insurance is a special type of insurance policy that offers coverage protection on an insured party’s property while it is being transported from one location to another.

The allotted coverage is dependent upon the value associated with the goods and the risk that is being taken by an insurance company while the goods are being moved – from the point of loading to the point of destination.

It can be included in personal types of insurance, but is most commonly associated with commercial insurance policies. 

Businesses typically use transportation insurance to cover the shipping of products both inland and on an international level.

Depending on what type of coverage is purchased, it could cover the packing and unpacking of products, the loading and unloading of the products, the actual transporting associated with the products, as well as the storage of the items while they are being transported or in the process from moving from one destination to another. 

Transportation insurance also provides the coverage of any loss of products or damage to products due to various types of damage, such as mishandling. Other examples of situations that could result in damage include accidents, criminal mischief, and even theft of the product or products.

Transportation insurance provides companies with a bit of financial protection – in terms of business revenue – if any type of loss occurs. While business insurance is often enough for a company, supplementing it with transportation insurance provides the highest level of protection. 

When moving products from one location to another, there is always the risk that those items may become lost, damaged, or experience some type of delay. Wholesalers, distribution companies, and even retailers benefit immensely by purchasing a transportation insurance policy.

Coverage will depend on the type of policy that is taken out, but usually always covers perils such as fire and theft. The typical inclusions that may become part of a transportation insurance policy include – but are not at all limited to – raw materials, packaging, and manufactured products. 

The transportation sector in today’s world is facing many challenges in facing obstacles, the pandemic, and even rapid advancements in technology. There is an immense amount of pressure for transportation companies and businesses to deliver fast and quickly.

As the pressure increases, the risk of a complication increases, too. If you are in charge of transporting goods, transportation insurance will give you a peace of mind that you are covered while performing your day-to-day responsibilities. 

To determine if transportation insurance is right for you and what type of policy that you would benefit from, contact one of our licensed agents here at Modica Associates.

We are one of the leading insurance firms in operation in the State of New York. We pride ourselves in our collaboration with each of our clients and our outstanding customer support. We offer innovation and knowledge that is unmatched.

We will work closely with you to determine what type of insurance you need and which policy add-ons are appropriate for your needs. For more information, call us today at: 718-855-1836

Recent Posts