Cargo Insurance Coverage Limits
Cargo liability limits refer to the maximum amount of insurance coverage (i.e., the amount of money) that an insurer will provide for the loss or damage of goods being transported.
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What is Cargo Insurance Coverage Limits?
Cargo liability limits refer to the maximum amount of insurance coverage (i.e., the amount of money) that an insurer will provide for the loss or damage of goods being transported. These limits are typically specified in the cargo insurance policy, and may be expressed as a dollar amount or as a percentage of the value of the goods being transported.
Cargo liability limits are important because they determine the maximum amount of compensation that the insurer will provide in the event of a loss or damage to the goods being transported. If the value of the goods exceeds the cargo liability limits of the policy, the insured party may not be fully compensated for the loss. As a result, it is important for the insured party to carefully consider their cargo liability limits when purchasing insurance coverage, and to ensure that the limits are sufficient to cover the value of the goods being transported.
In some cases, it may be possible to increase the cargo liability limits of a policy by paying an additional premium. This can be particularly important for businesses that transport high-value goods, or for individuals who are shipping expensive items for personal use.