Is Insurance Important in Export-Import Business? Absolutely YES.

Whether you are an exporter or an importer, taking the right insurance for your cargo is not optional – it’s essential. Every shipment, whether by sea, air, or land, comes with its own set of risks. As a business owner, your goal is not just to ship products but to protect your investment from unforeseen losses.

Why is insurance important?
As per Incoterms, some responsibilities of insurance fall on the buyer, some on the seller – depending on the agreed term (like CIF, FOB, EXW, etc.). But regardless of Incoterms, it’s always a smart move for exporters or importers to take cargo insurance to reduce financial risks.

Risks involved in Export-Import shipping:
• Damage to Cargo during loading/unloading
• Fire or explosion at the port or in transit
• Theft or Piracy (especially in high-risk sea routes)
• Container mishandling at terminals
• Natural disasters like storms, floods, or earthquakes
• Accidents during transport by ship, truck, or air
• Delay or loss due to strikes or wars
• Total loss of cargo (ship sinking, aircraft crash, etc.)

Even a small incident can lead to a big loss – especially in international trade where claim recovery without insurance can be complex and time-consuming.

Tip: Always discuss cargo insurance with your freight forwarder or shipping agent and choose a policy that matches the value and risk of your goods.

Better to be safe than sorry!

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