In global trade, air freight is a preferred mode of transport for high-value, time-sensitive goods. Whether it’s pharmaceuticals, electronics, or perishables—businesses rely heavily on air cargo for speed and efficiency.
But while air freight reduces transit time, it doesn’t eliminate risks. Loss, damage, pilferage, or delays can severely impact business operations and customer satisfaction. That’s where air cargo insurance becomes essential—it cushions businesses from the financial shock of transit-related incidents.
Top 5 Reasons Why Air Cargo Insurance is a Must
1. Protection from In-Transit Damage or Loss
Despite strict aviation protocols, cargo damage or loss due to mishandling, turbulence, or temperature changes is not uncommon. Air cargo insurance covers these risks, safeguarding your bottom line.
2. Covers Theft, Pilferage, and Tampering
High-value goods are always a target. Insurance protects your cargo from partial theft (pilferage), tampering, and total loss during stops, transfers, or customs clearance.
3. Mitigates Financial Risk for Exporters & Importers
Even a single loss in air freight can cost lakhs or more. Air cargo insurance ensures you’re not financially responsible for incidents beyond your control, maintaining business continuity.
4. Meets International Shipping Norms and Buyer Requirements
In global trade contracts (like CIF or CIP terms), insurance coverage is often mandatory. Having air cargo insurance in place ensures you meet international compliance requirements and builds trust with buyers.
5. Supports Faster Claims and Recovery
Air cargo insurance helps you recover losses quickly without depending on air carrier liability (which is often limited and complex). With the right documentation, claims can be processed faster and efficiently.
What BTW Insurance Offers in Air Cargo Insurance
- Comprehensive Coverage for Goods in Air Transit
- Custom Plans Based on Commodity, Route, and Risk Type
- Assistance in Documentation & Valuation
- Fast Claims Support & Survey Coordination
- Add-ons: Warehouse-to-Warehouse Cover, Strikes/Riots/Natural Calamity Extension
- Global Partnerships with Leading Underwriters
FAQ’s
1. What does air cargo insurance typically cover?
It covers damage, loss, theft, pilferage, and natural calamity-related damage to goods while being transported via air.
2. Is air cargo insurance mandatory?
While not always legally mandatory, it is highly recommended—especially under international trade agreements and high-value shipments.
4. What documents are needed to file a claim?
Airway bill, invoice, packing list, insurance policy copy, damage/loss report, photos, and surveyor report.
5. Can small businesses or startups get air cargo insurance?
Yes. We offer tailored air cargo insurance solutions for SMEs, startups, and first-time exporters.