|
 EXPORT
FAQ
Should I insure my shipment?
If the terms of sale stipulate
that the exporter is responsible for insurance, the
exporting firm should either obtain its own policy or insure
the cargo under a freight forwarder's policy for a fee.
If the terms of sale make the
foreign buyer responsible for insurance, the exporter should
not assume (or even take the buyer's word) that adequate
insurance has been obtained. If the buyer neglects to obtain
adequate coverage, damage to the cargo may cause a major
financial loss to the exporter.
Shipments by sea are covered by
marine cargo insurance.
Air shipments may also be
covered by marine cargo insurance or insurance may be
purchased from the air carrier.
What does export insurance
usually cover?
Export shipments are usually
insured against loss, damage, and delay in transit by cargo
insurance. Carrier liability is frequently limited by
international agreements. Additionally, the coverage is
substantially different from domestic coverage.
Although sellers and buyers can
agree to different components, insurance coverage is usually
placed at 110 percent of the CIF (cost, insurance, freight)
or CIP (carriage and insurance paid to) value.
Exporters are advised to consult
with international insurance carriers or freight forwarders
for more information
|
