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Road Transport: Transport insurance or not? 

Are you unsure if you should cover your goods with a transport insurance? Here are the answers to when and why you should choose an insurance.

 

Take out your insurance with J. Lauritzen's Eftf. and we will guide you in the whole process. 

19-03-2018

Am I fully covered without a transport insurance? 

Without a transport insurance, your goods are rarely fully covered if the accident strikes. You must therefore take out a transport insurance to cover the full value of the goods.

 

If you have a transport insurance, you can get full compensation on your goods and reduce the risk when transporting your goods.

 

Please note that in some cases you may be covered by your stock insurance if you have one. This you can check in your police.

 

 

What happens if I do not choose to take out insurance?

When transporting goods, one is often only partially covered, as carriers have only limited liability for damage and loss, typically regulated by international laws and regulations, depending on the type of transport, such as the CMR Convention.

 

For international road transport this insurance covers an amount of up to 8.33 SDR per kg. damaged or lost goods (gross weight).

 

1 SDR = ca. 8,80 DKK. Through this link, you can convert SDR to any currency:  https://coinmill.com/SDR_calculator.html

 

For national transport, the CMR insurance covers an amount of up to 8.33 SDR per kg. goods that can be legally transported by the vehicle.

 

In addition, only freight, duties, taxes and other costs of carriage will be replaced by the full amount due to full damage/loss and with a proportionate amount of partial damage/loss. However, this requires that the transport has been agreed and carried out in accordance with the NSAB 2015 and / or CMR Terms (CMR waybill is created).

 

CMR insurance does not cover insufficient packaging, force majeure etc.

 

If you have not purchased a commodity insurance, there is no additional cover.

 

Read the CMR Convention here

If you would rather read it in Danish click here

Download NSAB here

 

 

What should the value of my goods be before I need a transport insurance?

If what you are carrying is of high value in relation to its weight, it is a good idea to have a transport insurance. The CMR Convention only covers 8,33 SDR per kg. So, if what you are shipping weighs only a little but is of high value, economically it will pay off with a transport insurance.

 

If the value of the goods significantly exceeds the liability of the freight forwarder, you should consider purchasing insurance. Contact a freight forwarder if you are in any doubt. We are here to help finding the right solution.

 

 

 

 

Why does the freight forwarder not provide full insurance on all goods?

If all freight forwarders were to provide full insurance on all goods, transport prices would be significantly higher than they are today. This would mean that the carrier would have to be insured against all situations and types of goods. In this case, if goods of low value in relation to its weight were to be transported, the prices would be much higher. If your goods are of low value in relation to their weight, you are always covered by the CMR Convention.

 

Your transportation price is cheaper when you are not automatically covered

 

 

How much does a transport insurance cost?

The price of the transport insurance is calculated as with all other insurance policies from the specific situation.

 

The insurance price is calculated based on the total value of the goods + profit, which is set at 10% + transportation costs. The value of the goods is the purchase value as stated on the invoice. Transportation costs are added to this.

 

 

Where and how do I buy a transport insurance?

You can purchase a transport insurance through the freight forwarder for the individual shipment, which has an agreement with a reputable insurance company that always provides professional injury treatment. Alternatively, you can take out insurance through an insurance company covering all transports.

J. Lauritzen's Eftf. will find the right insurance for you and are here to guide you. 

 

Do you need advice or guidance in relation to your specific transport?

Call us at +45 75 12 31 33 or send us an email at mail@lauri.dk and we will help you in finding the right solution.

 

Note that this convention in only applicable for Road Transport. Every type of freight has its own. We can guide you in any way.

 

 

 

Go to our transport services