Single Transit Insurance lets you insure one shipment for the price of one. This can be useful for high value shipments, infrequent exporting or domestic movements. This guide will show you how Single Transit Insurance works, who needs it and how to confidently purchase a Single Transit Insurance Policy online.
What is Single Transit Insurance?
Single Transit Insurance is an insurance policy that protects one shipment on its journey from origin to destination. It insures goods from the moment they leave the warehouse, factory or supplier up until they arrive to their nominated delivery point. Sometimes referred to as single shipment insurance or specific voyage insurance.
As opposed to an annual open policy, Single Transit Insurance is much more focussed. You pay a premium for your shipment and the policy will protect you if there is a covered loss during transit.
Who needs Single Transit Insurance?
Many businesses do not ship every week. Many traders, SMEs, importers and exporters only ship on an occasional basis, seasonally or on a project basis. An annual insurance policy can be an unnecessary cost.
Single Transit Insurance can be useful for domestic shipments. Whether you are a manufacturer shipping machinery to a project site, a distributor shipping between cities or a trader shipping a one off bulk order, this insurance can be useful. For importers and exporters, Single Transit Insurance can protect a specific import/export shipment without having to pay for an annual policy.
Many small and medium businesses can be hit hard by shipment losses. Damaged shipments can cause a drop in monthly profits and cause issues with customers. A single transit policy can help reduce this risk at a reasonable cost.
What is Covered?
Depending on the wording of the insurance policy, most Single Transit Insurance policies will either cover:
All Risks – Covers physical loss or damage to your goods (excluding exclusions).
Named Perils – Covers specific events such as fire, collision, overturning and theft (if included).
Common exclusions include poor packaging, delay, fair wear and tear and pre-existing damage. Some items may not be covered or may have additional conditions. Always check the exclusions.
Cargo Insurance Online works in the same way. The insurance will cover your goods whilst in transit, however only within the terms of your policy. A broker can help you decide whether all risks or Named Perils would be best for your cargo.
Why Purchase Transit Insurance Online
Transit Insurance Online has made it easier to purchase the insurance you need at the time of shipping. Simply enter the details of your shipment, compare options and instantly receive your policy.
Advantages include:
Fast – Get insurance for your shipment in advance.
Convenient – No need to go into an office.
Compare – See what cover and price you can get.
Easy to store – All documents are stored digitally for claims.
Buying Transit Insurance Online can give you quick cover and an overview of what you are getting. This is often the most efficient option for occasional shippers.
How to Choose the Right Cover
Choosing the right Transit Insurance Policy depends on the goods being shipped and the journey they will take. From a brokers perspective there are 5 main things to consider:
- Value of Goods
Ensure you are declaring the correct value of your goods. If you under declare you won’t be fully insured. Often imports and exports will have a value added to cover cost, insurance and freight plus a margin.
- Type of Cover
If you are shipping fragile, perishable or high value goods the risk will be different to general goods. If you are shipping electronics or machinery you may want all risks cover. If you are shipping less sensitive goods Named Perils may be sufficient.
- Journey
The distance, terrain, number of transshipments and mode of transport will all affect the risk. A long road journey through multiple states will be different to a direct air freight shipment. Ensure you declare the correct journey.
- Exclusions & Packaging
Many claims fail due to poor packaging or the loss being excluded. Ensure you know what packaging is required.
- Purchase in Advance
In the Indian market Single Transit Insurance will be purchased in advance of the journey. If you purchase after shipping you won’t have any cover.
A Practical Example: Why Single Shipment Coverage Matters
A trader in Delhi is shipping high value electronics to a buyer in Mumbai. The goods are shipped by road and there is an accident. Part of the shipment is damaged. Without any insurance the trader will have to take the full loss, source replacement goods and manage the relationship with the buyer.
With a single shipment coverage policy in place, the trader will have reduced losses for the covered damage. Depending on the value of the goods and the policy. The trader will still have to source replacement goods.
This is the main benefit of Single Transit Insurance. It protects the shipment you need.
How ZippySure Can Help
ZippySure is a simple way to purchase Single Transit Insurance for individual shipments. Designed for traders, SMEs, transporters and businesses who need cover at the time of shipping.
Simply:
- Select the type of transit.
- Upload your invoice/shipment.
- Check the automatically filled in details.
- Compare your options.
- Pay and receive your policy.
ZippySure can help you with WhatsApp support. You can upload your documents, such as invoices and transport documents. You can also access claims support and endorsements.
If you ship more than once ZippySure also allows you to bulk upload and re-purchase.
ZippySure is a simple way to purchase Single Transit Insurance Online. It will give you individual cover and support whilst shipping. It is not an annual policy.
Conclusion
A Single Transit Insurance Policy can be a good option if you need to insure one shipment. Ensure you declare the correct value, choose the Right Cover for your goods and journey, and check exclusions. Purchase in advance of shipping.
If you need Cargo Insurance Online for a specific shipment ZippySure can help you easily compare and purchase Single Transit Insurance. Visit our Single Transit Insurance page.
FAQs
- What is Single Transit Insurance?
An insurance policy to cover one shipment. The policy will cover your goods from origin to destination. The policy will end when your goods arrive at their delivery point.
- Who should purchase Single Transit Insurance?
Those who ship occasionally, SMEs, traders and those shipping on a one off or project basis. Importers and exporters can also use Single Transit Insurance for a specific shipment.
- Can I purchase Single Transit Insurance Online?
Yes. Platforms such as ZippySure allow you to upload your shipment documents, compare cover and instantly receive your policy.
- What affects the price?
The value of the goods, type of goods, journey, mode of transport, packaging and cover you choose.
- Will theft be covered?
This will depend on your policy. Theft may be covered within all risks or if included in Named Perils.
- What documents do I need?
For internal shipments an invoice is usually required. For imports/exports an invoice is mandatory. Packing lists and bills of lading may be requested.
- When should I purchase?
Purchase in advance of shipping. If you purchase after shipping you won’t have any cover.