Goods In Transit Insurance Check List
Transporting Goods either from suppliers or to customers in a timely, safe and secure manner can make or break a business. Too many delays, or damaged goods or poor inventory management can frustrate clients, erode profitability and cause your ability to turn inventory into cash flow to deteriorate.
Making your goods seems to only be half of the battle these days, and with the rapid rise in ecommerce transactions and customer spending online, protecting your goods whilst in transit has never been more important.
So whether you are moving big-ticket items in bulk around the world, or small once pieces around your city, do you have the right Goods in Transit insurance to enable your business to both survive and thrive?
Goods In Transit Insurance Check List:
1: Do your goods requiring International Freight?
If your supplies are being shipped or freighted into Australia, then make sure that your goods in transit insurance provide sufficient covereage whilst your goods are in transit into Australia. Likewise, if you are an exporter of your goods, then understanding your route to market and that your goods in transit insurance specific requirements are being met. If you can change international markets, open new markets or alter how your goods are getting to market, then you should review your Goods In Transit insurance.
2: What is the True Value of the goods?
Making sure that you are insured for the correct value of the goods being transported. Being underinsured can both negate some insurance policies and either leave you to cover any total or partial loss you might experience.
3: Do you know the route to market for your Goods?
Do you have clarity over the route your goods are taking to market? Are there any types of transport that are not covered under your Goods in Transit policy? Are you meeting the requirements via your transport choice to maintain your goods in transit insurance?
4: Are there any preferred or required transportation suppliers?
Depending on the size, volume, value and type of goods you are transporting. It may be worth talking with your insurance broker and insurer to see if there are any preferred or required transportation suppliers. If goods need to be refrigerated, then the quality and timeliness of your transportation and logistic provider can impact the risks you are exposed to. Your insurance broker and insurer may have preferred suppliers or minimum transportation requirements.
5: How many goods are being transported?
The benefits of scale may start kick in as you transport more and more goods. The volume of goods being transported may reduce individual unit costs for Goods in transit insurance. In addition, the greater volume of goods being transported, the more you can learn about your channel to market and how the logistic suppliers perform.
6: What technology for tracking the movement of your goods whilst in transit?
Do your goods require any special tracking whilst in transit? Some refrigerated goods may require ongoing temperature recordings, or highly valued items may require more advanced location tracking to make sure your goods don’t wander whilst in transit.
7: How satisfied are Customers once they receive the goods?
Getting your goods between two locations is only part of the challenge you face when transporting your goods. Your goods need to arrive in a way that customers are satisfied to receive them and not disappointed when they turn up. So thinking through how a customer may receive your goods and the state they are in, is important.
8: Are there any limitations for storage of goods whilst in transit?
Some goods may get held up whilst in transit. Goods might sit on a dock or in a warehouse until it is time for them to be moved onwards. Understand what hold-ups there might be for your goods whilst they are in transit. Some insurance policies provide limitations to the length of time that goods can be stored whilst in transit.
As you look to transport your goods. Make sure you are aware of the checklist above to help smooth out any goods in transport insurance challenges.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Channelle Ricketts.