Does Your Container Need To Be Insured for Transport?

Every year, there are reports of truck accidents and cargo damage leading to significant damage to container shipments and financial losses. Besides accidents, other risks may result in container damage, including overturning, weather conditions, ship collisions, and other hazards. Thus, you should ensure your container is insured to avoid financial losses. But is it necessary to insure your container before transport? And will the moving company handle container insurance? Also, what happens if the transport company doesn't have insurance? Read on and learn the importance of container insurance.

Is it Necessary to Insure My Container Before Transport?

Absolutely yes! Insuring your shipping container before transport ensures you get reimbursements for the damage or loss of your container. Despite its undeniable benefit, many shippers skip getting container insurance to save more on shipping costs. But eventually, it ends up costing them more in case of an eventuality leading to container damage.

It is necessary to get container insurance for several reasons, including:

• Peace of mind

Even with the best plans and experienced drivers, accidents can happen. Insuring your container before transport will give you peace of mind, knowing that your shipment is covered in case of an accident or mishap while in transit.

• Protection against damage or loss

The safety of your goods in transit cannot be overstated. A container insurance policy is one way to ensure your cargo is safe during shipping. It's important to note that shipping containers are vulnerable to several risks, including hurricanes, fires, weather calamities, vehicle breakdowns, and human errors, and an insurance cover will protect you from losses.

• Client-Tailored Solution

Shipping container insurance policies come in different types, making it easier to choose a convenient one. The protection policy can also be customized to fit your needs and requirements. As such, you can select a plan that only covers the loss or damage of your container or one that protects you from liability.

Does the Moving Company Handle Container Insurance?

Though moving companies are legally required to be insured, container insurance is typically purchased by freight forwarders, shippers, or cargo owners to protect them from various risks during transportation. However, most moving companies handle the container insurance process on behalf of the shipper.

Some moving companies have partnered with insurance firms and brokers to offer container insurance to their clients. This makes insuring your container hassle-free as your shipping container mover handles the work for you. Also, the container supplier may include container insurance as part of the container usage fee. Still, the container user pays for the insurance. The amount paid depends on the container insurance type that you opt for.

What if the Transport Company Doesn't have Insurance?

Suppose the transport company doesn't have insurance. In that case, it indicates that you are about to deal with an unreliable company to ship your container. It also means that your freight is not protected while in transit, and you will suffer financial loss in case of loss or damage to your container. In addition, the uninsured moving company shows that it does not respect authority, so it doesn't care about protecting your cargo. The last thing you want is to trust such a company with your valuable shipment.

Although container shipping companies are legally required to be insured, there are still rogue movers with bad business practices, including working without an insurance policy. Some ignore the importance of insurance to reduce overhead, thus charging customers a lower fee or just out of ignorance. A container moving company that needs to be adequately insured is one of the red flags to avoid.

So why work with insured container movers? Here are some of the reasons:

1. You have peace of mind knowing that your container is covered against loss and damage
2. It shows that the company cares about its employees, thus knowing that you are working with a dedicated team.
3. You are assured that you work with professionals confident in their service level.

Before settling for a transport company, inquire whether they are insured. You can also check if the moving company is legal and insured in the FMCSA's system. Enter the company's name and check whether it is registered with the Department of Transportation (DOT) and whether its insurance is up-to-date.

If you are looking for a licensed, insured, and bonded container moving company, choose Container Transport. When you work with us, you can be guaranteed that your container is in safe hands and that you won't suffer financial losses in case of an eventuality.