Build a Cargo Rate/
Get Quote
Company Profile
Contact Us
Trade Links


The Need For Cargo Insurance
Although your clients may not see news of a ship sinking on page one, on average 350 ships sink per year.  Many more have minor accidents and encounter partial damage from heavy weather.   Furthermore, losses are sustained from leaky containers and shifting cargo, not to mention theft and non-delivery.

It is important that your client be aware of the fact that Master Carriers and NVOCC’s, limit liability during transit according to the Carriage of Goods by Sea Act (COGSA).  This limited liability should never be confused with Shipper’s Interest Cargo Insurance nor should this liability be confused with insurance as it does not protect your clients goods for loss due to Acts of God, it only covers those risks which are directly associated with the carriers liability.

Ocean Carriers and NVOCC’s limit their liability to $500 per package, while International Air Carriers limit liability to $9.07 per pound and domestic carriers are normally $0.50 per pound. 

Offering Shipper’s Interest Cargo Insurance to your clients allows you:

  1. to provide added value in service to your client,
  2. create an additional profit center for your company, and
  3. protect  your company from claims under your legal liability.
Your clients should also consider that there is no guarantee that the type and scope of insurance provided by the seller or buyer, fully protects their interests in the goods.   Notably, deductibles, exclusions and scope of coverage can vary greatly.  Offering your Clients Cargo Insurance enables you to offer them the ability to control the risk of transit for the merchandise being bought or sold, until it reaches final destination.  

Customers who do not purchase insurance and continue to import on a CIF basis or export on an FOB may considered the purchase of Contingency Insurance, Unpaid Vendors Insurance or Difference in Conditions Coverage to fully protect their interest.

What is Covered
Shipments can be covered regardless of the destination and mode of transit.  Rates are based on the commodity, volume, shipping method and destination.

Standard Coverage is “All Risk, Warehouse to Warehouse”, although lesser coverage’s are available (for detailed description of coverage Perils Table).  Goods are covered from point of origination to the final destination, including all intermediate transit whether by rail, truck or other forms of transportation and covers both inbound and outbound shipments.  It should be noted that inherent vice and delay are not covered.  Goods are also protected while in temporary storage for the purposes of consolidation or deconsolidation.

Coverage is provided for “General Average” declarations by the steamship company.  In the event there is a collision, grounding, sinking, etc. of the ship, a General Average will be declared.  This means that all parties with cargo on board a vessel must post a Bond which guarantees any financial obligation in order to get their merchandise released.   Not only will the insurance company pay for the cost of the bond, any damages assessed to your client will also be covered. 

Open Policies can be endorsed to include Domestic Coverage, warehousing, storage, Contingency, Exhibition and a variety of other coverage’s.

Windward, Your Service Partner
We can offer your firm two options of accessing Windward’s Cargo Insurance Program.

Open Policy
An Open Cargo Policy enables you, the Freight Forwarder or NVOCC, to go to a web site, enter your password and issue the original documents required by your customer without delay.  This policy is written on an ongoing basis and may be cancelled at anytime with a 30 day written notice.  The premium is billed based upon the certificate issued from the program once monthly.  There is not premium payment required up front.
(Click here for Cargo Application)

Single Trip Transit
A Single Trip Transit covers the cargo under the same conditions of the Open Policy, except that it is requested on a case by case basis.  When your client requests insurance, you simply complete the attached “Request to Issue Insurance Certificate”, e-mail to our office and you should receive the original documents by e-mail within the hour.  Copies of each document is kept in our system and you are issued an invoice once monthly for all transactions.  This service is a courtesy for the clients who may be just starting out in the business or who have only a small number of clients who are not insured elsewhere.  Should your transactions increase in number, you will be moved to an Open Policy.
(Click here for Single Trip Transit Application)

Warehouse Property – covers goods of others while stored in your warehouse.  This endorsement is utilized if a Cargo Legal Liability or E & O package policy is not in place.

Bailees’ Coverage – covers goods entrusted to your company by your client to perform servicing, repair, repackaging or other processing.  This endorsement is utilized if a Cargo Legal Liability or E & O package policy is not in place.

Domestic Transit Insurance – covers goods shipping within the U.S. and Canada

Unpaid Vendor Insurance – Sellers benefit from this insurance when selling without insurance included.  This covers the interest of the seller as an Unpaid Vendor from the time shipments become at the risk of the customer under the terms of sale until payment of draft but in no event beyond the time when this Assurer's risk would normally cease under the terms of this policy.

Contingency Insurance – Buyer’s benefit from this insurance when purchasing on under C.I.F. terms.  This policy covers the difference in conditions between such other insurance and the terms and conditions of insurance provided in this policy for the merchandise involved.

Contingency Supplier’s Insurance – Buyers may also benefit from this coverage as it guarantees collection of any claim recoverable under the terms and conditions of the seller's insurance when unpaid.

Discounted Rates
Volume discounts are available should you have a shipper that ships on a regular basis.  Remember, Windward Insurance Services is your Broker, our job is to represent you to the Insurance Company to insure that you can get the best rate and terms for your clients.
(Click here for High Volume Discount Request)

CA Insurance License #809244 | Tel: (562) 951-9599 | Windward Insurance Services copyright © 2009