Cargo Insurance A very important and often overlooked piece of the transportation puzzle is cargo…
Shipping by Rail Insurance & Intermodal Insurance Carriers
Shipping by rail is often the best option to deliver your goods or products in a quick and safe manner anywhere across the country. It is a popular option for shipment of any kind, ranging from small to large quantities. There are rail shipment options that operate on a transcontinental basis as well to transport your goods over long distances, across continents. That is not all, you will find that shipping goods by rail have several additional benefits as well, such as being one of the most economical shipping options. Shipping by rail also weighs less on the environment in so many ways.
However, even though there are so many benefits to shipping by rail, it is also a very tricky thing because damage to goods while shipping by rail is a much common occurrence than one might be able to comprehend. Good and merchandise are prone to damage due to the long journeys that they undertake during the rail-time. Also, often, goods end up being lost and not actually reaching their destination. The loss that you might have to bear could well run into thousands of dollars.
Hence, the best option to protect your goods and interest during the entire shipping journey is to get Shipping by Rail Insurance; however, it is important to understand that such insurance is very different in nature to an insurance you take while shipping through trucks or ships. The shipping by rail insurance is different and tricky, thus, understanding the basics of it is essential.
It is also important to note here that it is not at all mandated by law that the railroads need to have insured cargo only in their rail cars, hence, you can without any issues opt for shipping by rail without insurance as well. However, the risk factor is extremely high and you can get shipping by rail insurance at a nominal cost which makes it the best option to go ahead with to protect your goods.
#3 Major Mistakes People Make While Opting for Shipping by Rail Insurance
- The major mistake that people unintentionally making while selecting a shipping by rail insurance is to assume that they are similar, or at the very least, function in a manner similar to the coverage offered by a ship or trucking company. The liability coverage that most railroads offer is very low as compared to the other methods of transportation. In most cases, the insured amount is only up to $25,000 if any goods are damaged in a single rail car. This is unsuitable in cases where the total value of your goods that are on the rail car exceeds this amount.
- Another mistake that many people make while shipping by rail is to assume that their overall umbrella policy will extend and cover the amount that is over and above the shipping by rail insurance amount. In most cases, this does not happen as both are viewed as separate cases. Hence, you will still be covered only for the amount of your shipping by rail insurance, regardless of the amount of your umbrella policy.
- Lastly, people forget that different laws are present in different states for insurance purposes as well. Hence, if your shipment is traveling through several states then it is a good idea to do a bit of research on what are the laws in each of the states concerning shipping by rail insurance, claims, and benefits etc. This can prove to be very helpful.
What to do if you want additional coverage?
If the total value of your shipment is higher than the shipping by rail insurance then no need to panic. All insurance companies offer a service, often, referred to as an Excess Coverage Policy or Additional Coverage in which you can minimize your cost of risk by paying an additional cost. This will increase your coverage and you would be able to ship goods by rail without worries.
Even though you have to pay an additional amount for excess coverage, you will find that it is still economical and the cost for the same if far less than the cost of the cargo and the allowed deductibles under your umbrella insurance coverage. Moreover, the benefits of the same are numerous and at least your goods and interests will be protected in every leg of the journey.