Legally, both international and domestic carriers must hold a minimum amount of liability coverage – unfortunately, this is usually insufficient for the full extent of a potential loss.

And much like due process, carriers are only liable if the claimant can prove negligence, making filing a long, burdensome process.

If you’ve never experienced a freight loss, we congratulate you!

Your goods may be less susceptible to loss than most, but statistically speaking, they are still at risk and ripe for the picking.

30% of losses in-transit are unavoidable.

Insurance companies can predict you will eventually have a loss due to the extreme rigors of transit, such as long voyages, extensive lifting, thieves, moving, shifting, loading, poor weather and piracy.

When purchasing under foreign CIF incoterms, shippers are bound to the stipulations of an overseas legal system, which typically favor domestic interests, and with insuring conditions that can vary wildly from U.S. Practices.

Is your supply chain and relationship with manufacturing strong enough to handle a lengthy financial case? Under CFR exports, the seller is still obligated to provide coverage for the inland transit to the port. If damage occurs, will the selected policy expeditiously cover enough of the loss to relieve cash flow?