Avoiding Single Transit Insurance can leave you exposed, however most businesses will be able to reduce this risk. If you don’t have insurance in place to cover incidents like a broken down truck, theft during delivery or water damage during transhipment, you could lose out on a profitable order. Single Transit Insurance can protect your one off shipment, however it’s made easier with ZippySure. Understanding what you are looking at, what can affect the price and what are common mistakes can help you make the best decision when sending your next load.
What is Single Transit Insurance?
Single Transit Insurance is a type of insurance that covers your goods during a single journey from start to finish. It is also known as single shipment or specific voyage insurance. Single Transit Insurance is not designed for those who ship frequently and therefore is not an annual or open policy. This insurance is a good option for those shipping occasionally, or a single high value consignment.
It covers goods transported by road, rail, air or sea. A common way for inland shipping within India is having an Inland Transit (Rail/Road) Clause. This covers specific perils such as fire, explosion, lightning, collision, tipping and derailing. More comprehensive cargo clauses can be added, but the principle is the same. Your goods will be covered for a single journey and once they arrive at their destination the policy will come to an end.
If you are shipping frequently, for example 10 consignments a month, it will usually be more beneficial to have an annual or open marine policy. However if you’re a trader shipping a single container of machinery to a project site, Single Transit Insurance will be enough. Knowing what category you fall into will help you make a sensible decision.
Why Should You Compare?
Every shipment will have a different level of risk attached. If you’re shipping fragile ceramic tiles for 1200km by road this will have a different risk than sealed electronic goods by air. This will affect how much you pay for Single Transit Insurance.
When comparing, you want to make sure the policy will cover your risks. A low price with limited named peril cover may not be the best option if your loss isn’t covered. A higher price with more comprehensive cover and clear claims process may be a better option.
As a broker we know the most expensive option is the one that won’t pay out. When comparing you’ll have the time to ask the right questions. What is covered? What is excluded? How is the sum insured calculated? What documents do they need for a claim?
What to Compare Across Single Transit Insurance Options
Coverage and protection offered
What cover is being provided? Is it a named peril policy or a more comprehensive all risk. Named peril policies will only cover losses that happen due to the listed perils. All risk policies may cover accidental damage, theft and other risks. Always read the cover clause.
Types of goods covered
Different goods will have different risk levels. Fragile items, perishables, hazardous, high value electronics and machinery will each have different conditions and rates. Make sure your goods are covered and any conditions around packaging are clear.
Method of transport
Just because you have a policy for road transport doesn’t mean it covers rail, air or sea. If you’re shipping using multiple methods or have a transhipment point, make sure your policy covers the goods throughout all transport methods. This is especially important for importers and exporters who may have goods shipped by sea and then road to a warehouse.
Exclusions and limitations
This is where a lot of claims go wrong. Common exclusions include leakage, loss in weight/volume, wear and tear, inadequate packing, delay and inherent vice. Some policies will also exclude loading/unloading unless specifically mentioned and priced. Knowing this before taking out a policy will avoid any nasty surprises.
Sum Insured and Claims
Your sum insured should be the total value at risk. This should include any freight, insurance costs, import duty and specialist packaging. Under-insuring will trigger the average clause and you will be responsible for a percentage of the loss. Make sure you know what the excess is, what documents are needed to make a claim and if it’s new for old or market value.
Single Transit Insurance Cost
The price will depend on the rate of the commodity you are shipping, multiplied by the sum insured. The rate will depend on what you are shipping, where you are shipping to, what method of transport you’re using, quality of packing and your claims history. When comparing make sure you know what is included.
Policy purchase and documentation process
If you are ready to send your goods, you want to make sure it’s easy to purchase. What documents will you need? Usually an invoice. If you’re importing/exporting you may need a packing list, bill of lading or airway bill. How quickly can you get the policy? You don’t want to be waiting days for the policy when your truck is at the loading bay.
Choosing the Right Policy
There is no one ‘best’ policy for every business. The best Single Transit Insurance for your goods will depend on three things; value of shipment, type of goods and method of transport.
If you’re shipping a one off high value piece of machinery you want to make sure you have comprehensive accidental damage cover and an accurate sum insured. If you’re a small trader shipping fabric by road a named peril inland transit policy may be enough. If you’re importing and have a consignment at the port you need to make sure it covers unloading and inland transport.
A great question to ask your broker is if the goods were damaged in the most likely way would this policy cover it? If you’re unsure then you need to compare.
Common Mistakes to Avoid
The most common mistake people make is not insuring to the full value. By only insuring to the invoice value you aren’t covering freight and will therefore be under-insured.
Not covering loading/unloading. If the loss happens during loading/unloading and your policy doesn’t cover it you won’t have any help. Not considering the packing warranty. If your insurer requires a certain standard of packing and yours is different you may get less or no claim.
Buying without reading the exclusions. Spending 5 minutes reading the exclusions will save you a long argument later.
How ZippySure Helps Arrange Single Transit Insurance
ZippySure has been designed to make it easy to insure individual shipments. Upload your invoice, see what cover and price you are getting, pay and get your policy. We offer inland, import and export cover. Depending on what you are shipping you’ll need different documents. Inland shipments will generally need an invoice. Import/Exports may need a packing list, bill of lading or airway bill. If you’re shipping frequently we also offer bulk uploads, recurring shipments and templates so you can easily get the same cover.
We also help with endorsements. If you need to amend anything on your policy we can help you raise and track your endorsement. If you need to make a claim we have a dedicated team to help you register and track your claim. This makes it easy for traders, SME’s, importers and exporters to insure individual shipments.
Conclusion
Taking the time to compare your Single Transit Insurance options is a practical way to manage your risk. Choosing the right policy for your shipment will ensure you have the right cover, sum insured, exclusions and claims process. Taking a few minutes to check will help you avoid a large loss.
If you have a shipment to send take a look at our Single Transit Insurance service.
FAQ
1. What is Single Transit Insurance?
Single Transit Insurance covers your goods during a specific journey. The policy will end once your shipment arrives at their destination or the cover has expired.
2. How can I compare Single Transit Insurance?
Compare the cover, exclusions, how the sum insured is calculated, excess, what transport methods are covered and what documents are needed for a claim. Whilst price is important, you need to make sure you know what is covered.
3. What affects the cost of Single Transit Insurance?
The main factors will be the value and type of goods, how far they are going, what transport method and quality of packing. Generally the price will be the commodity rate x sum insured plus GST.
4. Can I Buy Single Transit Insurance online?
Yes! Many insurers and platforms including ZippySure allow you to input your shipment details, view your cover and price, pay and get your policy.
5. What should I check before choosing a Single Transit Insurance?
Make sure your goods are covered, all transport methods are covered, loading/unloading is covered if needed, the sum insured is correct and the exclusions are acceptable.
6. Is Single Transit Insurance suitable for small businesses?
Yes! Small businesses who ship occasionally or have a single high value consignment will often find it more cost effective. You’re only paying for the journey you need to insure.
7. How does Single Transit Insurance protect my goods?
It covers the financial risk of losses and damages during transit. If your goods become damaged, lost or stolen during the insured journey you can make a claim. This will depend on the terms of your policy, sum insured, excess and exclusions.