Liability is a word often used in the shipping industry and is the main reason one should consider obtaining Cargo insurance when shipping and especially for tradeshows. Most carriers have “Limited Liability” insurance covering your goods, and this refers more to negligence then responsibility. The first issue is you have to prove their negligence, and the next issue is what is covered and for how much?
The word Limited here is also of great concern because there is a limit on the amount they have to pay even if you are able to prove negligence on the part of the carrier, for example and Ocean carriers’ liability is limited to $500.00 per CSU (Customary shipping unit). The CSU can pertain to an entire Ocean container as opposed to one pallet. An international air carrier’s liability is limited to $9.07 per pound under the Warsaw convention. Also the carrier is not responsible for many circumstances such as, Act of war, Act of God, Act of public enemies, Strikes, riots, and many circumstances that can be attributed to the shippers packing, and markings of the crates.
It is clear that the carrier’s responsibility is truly limited, and this is why Cargo insurance is so important, especially one that is listed as “All Risk” coverage. Not only does this cover your goods while in actual transit but will cover you while your goods are in storage, on display at the show, and throughout the multiple handling of your goods for the entire round trip process until it is returned to you.
Some companies already have an insurance policy, and that is good, but the policy may lack the broad coverage clauses to protect your exhibit for the entire shipping process. It may also have a higher deductible then you would have purchasing the All Risk cargo insurance. Finally, it would relieve you of having to deal with the administrative duties you would then be responsible for in filing a claim. It is truly worth taking some time to consider the many benefits of having this insurance in place when sending your valuable booth materials out to an event. After all of the expense of securing a booth, marketing for the show, travel and hotel bookings, and the time invested, it just makes sense to insure the one thing this all revolves around; Your exhibit.
