International Logistics: Labeling
Should I insure my shipment?
If the terms of sale stipulate that the exporter is responsible for insurance, the exporting firm should either obtain its own policy or insure the cargo under a freight forwarder's policy for a fee. If the terms of sale make the foreign buyer responsible for insurance, the exporter should not assume (or even take the buyer's word) that adequate insurance has been obtained. If the buyer neglects to obtain adequate coverage, damage to the cargo may cause a major financial loss to the exporter. Shipments by sea are covered by marine cargo insurance. Air shipments may also be covered by marine cargo insurance or insurance may be purchased from the air carrier.
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