Shipping containers are the backbone of global trade, transporting cargo across oceans and continents. But like any asset, containers come with risks of damage, loss, or liability. That’s why having proper container insurance is such an important part of protecting your investment.
This article will explore key considerations regarding insuring your shipping containers to help you make informed insurance decisions.
Types of Shipping Container Insurance
There are several main types of insurance policies designed specifically to cover shipping containersin different situations:
- Container Yard Coverage – Insures containers stored in a yard against perils like weather, theft, vandalism.
- Container Cargo Coverage – Covers the cargo inside containers during transit against loss or damage.
- Container Transit Coverage – Insures containers while in transit on land or sea against potential mishaps.
- Container Storage Coverage – Provides protection when containers are stored off-site or warehoused.
Reviewing these main policy types and weighing your particular container needs will help determine ideal insurance coverage. Component factors like location, transit routes and cargo value help tailor policies.
Covered Perils and Exclusions
Container insurance policies cover damages resulting from standard shipping perils. These include hazards like collisions, overturns, accidents, wind, hail, floods, earthquakes, fire, explosions, lightning strikes, theft, vandalism or riots. Having coverage for these common risks of transport is crucial.
However, most container insurance policies also contain exclusions where damage claims will be denied. Typical exclusions involve incidents like war, nuclear events, terrorism, wear and tear, improper packing, equipment failure, vermin, corrosion, contraband, illegal activity and more. Understanding both the covered perils and standard exclusions is key when selecting insurance to avoid problematic gaps in protection.
The Claims Process and Documentation
The container insurance claims process starts immediately after an incident occurs. Promptly notify your insurer and agent of any event that causes container damage. Provide documentation like photos of damage, repair estimates, inspection reports, or analyses of the incident.
Having maintenance records and past inspection details will help support your claim by evidencing the pre-incident condition of the container. Familiarize yourself with your insurer’s specific claim timeframes, reporting procedures and required paperwork to expedite processing your claim.
Factors That Impact Cost
Multiple factors determine the cost of container insurance, including:
- Container type – Refrigeration units or tanks cost more to insure.
- Coverage amount and deductible
- Location and transit routes – High risk areas increase premiums.
- Claim history – Frequent past claims will raise prices.
- Insurance provider – Compare multiple quotes.
Analyzing these factors will help tailor policies to get required coverage at the best price. Higher value cargo or transit through piracy waters may require more coverage, impacting costs.
Policy Options and Alternatives
Work with an experienced insurance broker to get competing quotes and find the optimal container insurance policy for your situation. Consider alternatives like self-insuring through a captive fund, contingent cargo coverage paired with property insurance, or joining group container pools to share risks. Compare costs and benefits of these options against traditional container insurance.
Making informed container insurance decisions will lead to coverage that protects your containers as assets while avoiding paying for unneeded premiums. Protect your investment through education and evaluation of all available options.
In Conclusion
With containers being essential but vulnerable assets, proper insurance is crucial to protect against unpredictable perils. Learning the key factors around container insurance equips you to get tailored, cost-effective coverage. Do your research to ensure your containers have adequate protection against any potential losses.
Get Durable, Quality Shipping Containers – Boxtainer Inc Delivers
Boxtainer Inc provides Ontario businesses with dependable shipping container solutions. For over 15 years, we’ve delivered products and services that stand out.
Our expert team meticulously inspects every container, ensuring only units in pristine, cargo-worthy condition are offered. We meet and exceed high quality requirements with each specialized container.
Whether you need secure storage or versatile transportation, Boxtainer Inc has reliable container options to fit your needs. All backed by our exceptional customer service reputation.
Contact Boxtainer Inc today. Get high-quality shipping containers from the specialists you can trust!