Cargo Insurance

Ontario Cargo Insurance

One of the best things about the modern world, and something that we take for granted too often, is that people have access to goods from all around the world. Centuries ago, you would be stuck with only being able to use what was in your local area. As time passed, people gradually gained access to stuff from neighbouring communities, slowly spreading nationwide, then with neighbouring countries, and finally globally. However, this was not done automatically; it was done with updated travel technology, as trains, cars, ships, planes and more made their mark on the shipping industry.  

However, there is some risk involved in moving large quantities of products from one place to another. While the employees involved in this do their best to ensure that nothing gets lost, stolen or damaged, something could cause a loss. This can leave a shipping company having to pay a large amount of money for what was lost. Luckily, companies can prepare for this loss with cargo insurance coverage. 

What Is Cargo Insurance? 

Cargo insurance, also known as freight insurance, is a form of business insurance that gives peace of mind to shipping company owners. It works primarily as a form of protection, ensuring that even if there is an incident, they are safe from the financial losses usually incurred. Whether you’re a small business in the trucking industry or you deal with ocean cargo ships, you need protection if there is an incident. Cargo insurance can help reimburse you if such a financial loss occurs. 

Maybe one of your shipping trucks is involved in a collision, damaging large amounts of inventory. Perhaps some ocean freight falls off the cargo vessel when your company transports many items across an ocean. Maybe in a moment of confusion and miscommunication, some items end up on the wrong plane, ending up very late. Each of these situations also opens you up to the risk of theft. In any of these scenarios, the shipping company will likely be on the hook for large amounts of money from some almost certainly irritated customers.  

Who Needs Cargo Insurance In Ontario? 

Any company that transports goods from one place to another could use the protection provided by cargo insurance. This is true both for shipping companies and for companies transporting their own materials. It doesn’t matter how you transport your goods. Land, sea, and air freight, despite all being very different, face risks when moving items from one area to another. The list of things that can go wrong from just a little mistake is quite long. Improper loading, physical damage from weather, or making a wrong turn and ending up at the wrong destination are all possible outcomes that can really disappoint a waiting customer. If you’re a business owner in the transportation industry, it’s best to protect yourself with cargo insurance. 

Is Cargo Insurance Required In Ontario? 

Cargo insurance policies are not legally mandatory in Ontario, with the exception of towed cargo insurance being mandatory in specific municipalities. The only type of commercial insurance that is mandatory in Ontario is commercial auto and fleet insurance, also known as commercial auto insurance. However, due to the very high number of risks involved, cargo insurance is recommended for every business susceptible to the risks involved with transporting cargo. Whether you’re transporting items through the air, over the sea, or on land, there are risks you face, and cargo insurance is the only way to ensure you will be financially protected if this were to happen. 

What Types Of Cargo Insurance Are There? 

Cargo insurance is not a simple one-size-fits-all coverage. Depending on the level of protection required by the policyholder, a cargo insurance policy can provide the best level of protection for the situation. If you would like assistance in getting specialized coverage that is right for you and your business, it is best that you speak to your Morison Insurance broker. 

All-Risk Cargo Insurance 

This type of coverage provides protection from the largest variety of risks. Despite the implications of the name, it doesn’t provide protection against every single possible risk, but it does allow for a much greater allowance of risks than named-perils coverage. A small number of things are excluded from this policy. Any risks this policy does not protect you from will be explicitly mentioned in the policy itself. If you would like to know which risks might not be covered, your Morison Insurance broker will be glad to help guide you through this process. 

Name Perils Cargo Insurance 

As the name implies, this type of coverage will provide protection from perils named on the policy itself. To make up for the fact that it provides less comprehensive coverage, it is a basic policy that will likely have a lower quote than all-perils coverage. This will often include perils such as the transport getting stranded, as well as basic damage and dangers like collisions. If you would like to know which dangers any of your potential named perils insurance plans provide, it is best that you speak with your Morison insurance broker. 

What Does Cargo Insurance Cover? 

Cargo insurance covers a wide range of potential dangers to shipments. This does vary from case to case, though, as named perils coverage does not protect as many coverages that are protected by all-risk coverage. The risks that are generally included in a cargo insurance policy include the following: 

• Collision 
• Explosions 
• Being stranded 
• Sinking in the case of sea travel 
• Cargo theft 
• Breakage or leakage 
• Damage from unusually strong weather 
• Inability to deliver 

Please note that this is not a complete list of perils that can be covered with cargo insurance. If you would like to know more about which potential items might be covered by a cargo insurance policy, it is best that you contact your Morison insurance broker, and they will be happy to let you know. 

What Does Cargo Insurance Not Cover? 

There are certain perils that are not covered by the protection cargo insurance provides, even if you decide to get all-perils coverage. Some of the things not covered by a policy, regardless of how much it is desired, include the following: 

• Natural wear and tear over time. 
• Damage due to poor maintenance. 
• Damage is done intentionally by the policyholder. 
• Protection for animals on board. 
• Damage done by wars and riots. 

Please note that any level of coverage might not cover other perils. To learn more about what you might still be exposed to, speak with a Morison Insurance broker. 

Does Cargo Insurance Cover Shipping Outside Of Ontario? 

Yes. Cargo insurance protects companies even when the cargo that they are transporting is being shipped outside of Ontario, assuming you have the proper coverage. If your cargo crosses the province’s border, cargo insurance will protect it from all perils specified on your policy. It is also not limited to bordering provinces such as Manitoba and Quebec. Even if your delivery goes to the other side of the country, it is protected. If you need to ship something from Toronto all the way to Vancouver, that won’t be a problem. Even if you need to get something to the territories up north, your cargo insurance policy will be active and able to protect what it is that you need to carry. Please ensure that your broker knows where you are shipping to and from, as well as all places in between, so that you can get the best coverage possible. 

Does Cargo Insurance Cover International Shipping? 

Yes, cargo insurance protects international trade as well. If your shipment goes to the United States, you’re covered. Even if it goes further south to Mexico or the continent of South America, it will cover you. Even if you need to carry things across the ocean, such as to Australia, Asia, Europe, or Africa, you’ll be fine. No matter where in the world you have to carry cargo, you and your business will be covered by the policy. If you would like to know how your policy might change based on where you will be shipping your cargo or want to adjust your cargo insurance policy to help cover new pick-up and drop-off points, please contact your Morison Insurance broker. 

How Much Does Cargo Insurance Cost In Ontario? 

There is no set cost for a cargo insurance quote. This is due to the vast number of factors that could possibly have an impact on the risks involved in transporting cargo, as well as with the company doing the shipping. Each insurance provider will give different cargo insurance quotes to the same company. However, there are a handful of factors that can be used to help estimate the cost of cargo insurance. These include the following: 

• The level of coverage desired by the policyholder. 
• The products being shipped. 
• The destination being shipped to. 
• Where your business is located. 
• The mode of transportation used for shipments. 
• How often you ship products. 
• Your claims history. 
• The number of years you have in the industry. 
• The size of your business. 

Please note, however, that this is not a complete list of factors that could potentially impact your cargo insurance quote. If you would like to know more factors that could have an effect, your best move is to speak with your Morison Insurance broker. 

Can I Lower My Cargo Insurance Quote? 

With all of the factors impacting your cargo insurance quote, it’s tempting to think that you may have the opportunity to get more affordable coverage and keep the cost of insurance down. It turns out there are a few factors under your control that could have an impact on your premium, although the impact will differ based on the insurance company you are with. Some things you can do to lower your quote are as follows: 

• Avoid making claims on small losses to maintain a clear record. 
• Have extra risk management strategy training for your staff to decrease the odds of an incident happening. 
• Increase your deductible. 

Please note that these are not the only ways in which you can lower your cargo insurance premium. If you would like to know more ways in which you can save on your cargo insurance premium, please speak with your Morison Insurance broker. 

Where Can I Get A Cargo Insurance Quote? 

You can get a cargo insurance quote from Morison Insurance. Morison Insurance is a family-run insurance brokerage that treats its clients as an extension of that family. We have been serving Ontario residents for over 100 years and have a 5-star rating after thousands of reviews. Fill out a form below or call 1-800-463-8074 to gain the protection of cargo insurance or any other type of insurance we offer.