The transportation of goods is a key stage for any company, but it is subject to various risks, such as theft, accidents, damage and loss. Freight Insurance is the best solution to avoid losses and protect your business.
The transportation of goods is an essential process for thousands of companies that have to ensure that their products reach their destination quickly and safely. However, this journey is not free of risks. Road accidents, thefts, breakdowns and natural disasters can compromise the integrity of cargo and generate heavy losses.
Without adequate goods protection, a simple unforeseen event can result in major financial losses, which compromise the company’s profitability and reputation. This is why Freight Insurance is an indispensable solution for any business that deals with the national or international transportation of goods.
In this article, we’ll explain the main risks in transportation and the reasons why Freight Insurance is an essential investment for mitigating losses and preventing damage.
The main risks in transporting goods
Regardless of a company’s size or sector, any goods in transit are exposed to risks. According to the National Association of Freight Forwarders (ANTM), quoted by ECOseguros, 30% of Portuguese SMEs involved in international transport face losses – and the causes are diverse:
- Road accidents: collisions, skids or rollovers can damage cargo;
- Theft and robbery: these incidents can happen both in transit and in warehouses or distribution points;
- Damage caused by bad weather: heavy rain, storms and extreme temperatures can compromise the integrity of the cargo.
Freight Insurance safeguards a large number of risks resulting from transportation by sea, land or air. This solution directly protects the cargo being transported.
Advantages of contracting Freight Insurance
Freight insurance is more than a precaution – it’s a strategy to ensure that, whatever happens, your cargo is protected and your company doesn’t suffer from unforeseen events. There are many advantages:
- Financial Protection
Without Freight Insurance, a company may be forced to bear heavy losses in the event of an accident, which will affect its financial stability.
- Flexibility in Contracting
The company can contract this insurance per trip or for one year and beyond.
- Extended Coverage
O seguro e respetivas coberturas podem ser adaptadas ao tipo de carga e rota, ao meio de transporte e aos riscos envolvidos, garantindo a melhor proteção para as necessidades específicas de cada empresa.
- Operational Peace of Mind
By contracting this solution, a company avoids complications with customers and suppliers, ensuring safe deliveries without unexpected losses.
- Market Competitiveness
Companies that guarantee the security of their goods demonstrate more credibility and professionalism to customers and business partners.
The risks associated with the transportation of goods can also be intensified by factors such as market volatility and unstable supply chains. Implementing robust risk management and contracting Freight Insurance are essential measures to protect company assets and ensure operational continuity, whether in the retail trade, food exports, heavy materials logistics or any other activity involving the transportation of goods.
In light of the recent global crises, it is advisable for companies to re-examine the Incoterms® (international rules for the uniform interpretation of commercial contractual terminology) in their international contracts. This adaptation allows for a better distribution of responsibilities and risks between the parties involved, ensuring that the Freight Insurance contracted offers the necessary cover for the dynamics of international trade. Although it is not possible to eliminate risks, there must be a growing awareness of them in order to mitigate them.
Before contracting Freight Insurance, ask yourself the following questions:
- What type of goods are being transported?
- What are the main risks involved in the operation?
- What is the most common means of transportation (land, sea, air)?
- Do you need international cover or just national cover?
At Famasegur, we’ll help you find the best solution to guarantee the safety of your goods and your business.
