XR Claims and Cargo Insurance: Protecting Your Shipments
When it comes to international shipping, cargo insurance is often overlooked. Many exporters and importers assume that if something goes wrong, their freight forwarder will simply refund the value of their goods. In reality, that’s not how the industry works.
At KranLee, we emphasise the importance of protecting your shipments with proper cargo insurance, ensuring that your business is safeguarded against the unexpected.
Why Cargo Insurance Matters
Shipping goods internationally comes with inherent risks. Vessels can sink, containers can be damaged, and packages can be lost or delayed. While carriers operate with professionalism and care, their liability is limited – and often insufficient to cover the full value of your goods.
For example:
- Sea freight liability is often capped at £692.83 per package or 2 SDRs (Special Drawing Rights) per kilo, far below the true commercial value.
- Air freight liability is limited under the Warsaw or Montreal Convention depending on the route and airline.
- Road freight has its own liability limits under local or international carriage rules.
Without insurance, businesses may face significant financial exposure if something goes wrong.
Types of Cargo Insurance
There are two main ways to protect your shipments:
1. Annual Open Policy
For exporters with regular shipments, an open policy provides year-round coverage for all consignments. This approach simplifies administration, ensures consistency, and avoids gaps in protection.
2. Single Shipment Policy
Smaller exporters or importers can opt for shipment-specific insurance. This “insure and go” approach ensures that a single consignment is covered without committing to a full annual policy.
Both options are tailored to your business needs, and KranLee works closely with clients to assess the correct coverage, the mode of transport, and the value of goods.
XR Claims: When Things Go Wrong
Even with the best planning, accidents happen. That’s where XR claims (Extraordinary Risk claims) come in. These are claims made when unexpected events – from vessel accidents to severe weather incidents – result in loss or damage to cargo.
KranLee supports clients through every step of the claims process, ensuring:
- Clear documentation of losses
- Efficient liaison with insurers
- Guidance on limits of liability
- Optimising recoveries to minimise business impact
Why Work with KranLee on Cargo Insurance
Choosing the right cargo insurance is not just about compliance – it’s about peace of mind. With KranLee:
- We help identify gaps in your coverage before shipments leave your premises
- We advise on the best policy type for your volume and frequency
- We provide support with XR claims, ensuring a smooth recovery process if the worst happens
- We help you understand the risks associated with different modes of transport (air, sea, road)
Proper cargo insurance protects your business from significant financial loss, allowing you to focus on growing your international trade with confidence.
Need help with cargo insurance or XR claims? Contact KranLee today and let our team of experts guide you through protecting your shipments efficiently and effectively.