What is cargo insurance?
Cargo insurance protects your company from damage, theft or delayed delivery during goods transport. It provides insurance above and beyond the highest statutory liability coverage provided by transport liability insurance, and can make or break a company.
Why should I purchase cargo insurance?
Goods are subject to many hazards and risks during transport, but also during loading and unloading. Goods may be damaged or even stolen, no matter how carefully they are packaged, loaded and transported. Purchasing insurance is an effective way to protect goods and supply chains; damage claims are simple and paid quickly, and ensure that any damaged goods will not affect customer relationships.
How do I benefit from cargo insurance purchased via the SCHUNCK GROUP?
Company and insurance data is transferred automatically, allowing you to insure your goods with just a few clicks.
You can select cargo insurance for each individual cargo, saving you money on costly framework agreements.
The insurer will always pay out the agreed upon insured amount, without applying the average clause, even if you are underinsured. So there are no unpleasant surprises in the event that you need to make a claim.
TIMOCOM customers can purchase cargo insurance covering all risks without a deductible starting at 0.0005% – 0.000549% of the value of the goods.
You will have access to complete insurance coverage, from goods damaged by force majeure up to and including coverage for financial losses.
Save time on selecting a policy, filling out details on the cargo and class of goods, and simply select from four attractive premiums.
SCHUNCK GROUP insurance premiums: exclusive cargo insurance, only for TIMOCOM customers
How to verify your company
To take part in the Business Partner Check, you must be a TIMOCOM customer residing in Germany.
Open document settings: Log in to the TIMOCOM Marketplace as usual and open your document settings.
Verification: Verification of documents you have already uploaded begins automatically and may take a few minutes. Once the verification process is complete, you will be able to see which documents have been verified.
- Verification complete: Missing or invalid documents can be uploaded at any time in order to complete the verification process. Once the verification process has been completed successfully, you will receive the Verified Company seal.
These are the questions our customers most frequently ask about cargo insurance
In principle, you should always purchase cargo insurance when goods are transported. The transport of goods carries with it a multitude of risks. This is due, among other things, to the specific characteristics of the goods, but also to the different transport routes, means of transport, loading tools, climatic conditions, etc.
In principle, you should always purchase cargo insurance if the freight will be transferred to an external freight forwarding company/road haulier and the value of the goods exceeds the statutory liability coverage in accordance with HGB (German Commercial Code) & CMR of 8.33 or 40 special drawing rights for each kilogram of gross weight of the goods.
Example: A freight forwarding company is liable for 8.33 SDR, equal to around 10 EUR per kilogram of gross weight of the goods: 500kg of mobile phones with a value of 1 million euro have statutory liability coverage in accordance with CMR of 500kg * 8.33SDR *1.20 EUR/kg = 5000 EUR.
The customer affected by the loss would be left to cover the difference, that is 995,000 EUR.
In short: the lighter and more expensive the goods, the higher the risk.
Cargo insurance protects a company from damage, theft or delayed delivery during goods transport. It provides insurance above and beyond the highest statutory liability coverage provided by transport liability insurance, and pays full compensation in the event of damage. The maximum insured amount for each claim is based on the insured value of the goods and not on the highest statutory liability coverage per kilogram of gross weight of the goods, as is the case for liability transport insurance.
Purchasing cargo insurance is not a legal requirement, however it’s a good idea to do so if any of the following applies:
- Your company sends goods and cargo via road haulier or freight forwarding companies.
- Depending on the contract, you, the buyer or seller, assume the risk of goods transport yourself for various parts of the route.
Usually, the (initial) freight forwarding company purchases the insurance when requested to do so, when it is in the interest of the shipping agent to do so, or when there is a presumption that they will do so.
Goods are subject to many hazards and risks during transport, but also during loading and unloading. Goods may be damaged or even stolen, no matter how carefully they are packaged, loaded and transported. Purchasing insurance is an effective way to protect the goods; damage claims are simple and paid quickly, and ensure that any damaged goods will not affect customer relationships. cargo insurance might mean the difference between staying in business or not.
Of course, the cargo insurance can be purchased for each individual good within a single transport. This is particularly useful if you only occasionally need cargo insurance and a framework agreement would be too expensive for the scope. Furthermore, as a logistics provider, you can fully compensate your customer in the event of damage and therefore do not jeopardise the customer relationship.
Premiums for normal cargo insurance covering all risks without a deductible in Germany and neighbouring countries come to 0.0006% – 0.0007% of the value of the goods.
TIMOCOM customers can purchase cargo insurance covering all risks
without a deductible starting at 0.0005% – 0.000549% of the value of the goods to be insured. We offer a variety of premiums, from 5.49 EUR for goods valued at 10,000 EUR to 50 EUR for goods valued at 100,000 EUR. The premium is paid by the prospective buyer or shipping agent.
Transport within the EUROPEAN ECONOMIC AREA can be insured (= EU plus the following states: Iceland, Liechtenstein and Norway) as well as Great Britain and Switzerland. Due to national legislation, transports within Switzerland may not be insured from Germany.
In the case of cargo insurance, you will be purchasing individual policies for each good. The cargo insurance takes effect as soon as the goods have been moved or removed from their previous location for transport. The insurance thus also covers the goods being loaded into a truck. The insurance ends as soon as the goods have reached their destination.
Cargo insurance protects against the following damages:
- Damages caused by force majeure or unavoidable events
- Damage to goods during transport, loading and unloading & during transport-related storage up to a maximum of 60 days.
- Consequential damages to goods
- Financial loss including delivery after deadline
Damages not covered due to:
- War, civil war or warlike events on land
- Use of chemical, biological, biochemical
- Substances or electromagnetic waves as weapons
- Damage caused by trans-regional failures of network structures lasting longer than 48 hours,
- Nuclear power
- Insolvency and default of the ship owner, charterer or operator of the ship
- Delayed transport
- Internal spoilage or the natural condition of the goods
- Standard deviations in amounts, mass and weight
- Normal fluctuations in humidity and temperature
- Inadequate packaging or improper loading methods
The following goods must be agreed with TIMOCOM or SCHUNCK regarding the insurance coverage before starting the transport:
- Value of goods > EUR 100,000
- Antiques and works of art
- Precious metals
- Explosive and particularly inflammable goods
- Liquids in tanks (capacity > 5,000l)
- Motor vehicles, aircraft and water sports vehicles of all types
- Live animals, flowers and plants
- Raw materials in bulk, bagged or bulk form (e.g. cotton, coffee, cocoa, tea, sugar, metals of all kinds, tree trunks, stones)
- Bulk goods
- Removal goods
- Valuables (e.g. cash, documents, precious stones, genuine pearls, furs and carpets, certificates, vouchers)
- Firearms of all types and related ammunition
- Cigarettes, cigars, cigarillos
The SCHUNCK cargo insurance, which is offered exclusively to TIMOCOM customers via the TIMOCOM Marketplace, is available for the following European Union member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. In addition, it is also available for the following countries: Iceland, Liechtenstein, Norway, Switzerland and the United Kingdom (UK). SCHUNCK can of course insure transports worldwide. However, this is then no longer possible via the automated process and is assessed as an individual case and on request.