Import transportation insurance
According to the Incoterms rule agreed in the international contract of sales, the importing party should evaluate taking out an insurance policy that covers the risks concerning the transportation of the merchandise from the premises of the selling company to the point of final destination.
This insurance will cover the risks of stowage, handling, storage, loading or transporting the goods and even others such as riots, strikes or acts of piracy.
Transportation insurance is different from the carrier’s liability insurance where compensation is limited by the weight and value of the merchandise. In the transportation insurance contract, the holder decides the risks covered, compensation and damages.
In general, the risks are covered by policies that include the Institute Cargo Clauses (ICC) of the Insurance Institute of London. They take on three types: A, B and C, with A offering the greatest coverage.