Transportation insurance - How do you cover risk of transportation?
Why transport insurance?
Transport insurance ensures that both customer and carrier do not have to fear high costs in case of damage. Transporting things involves risks. These are covered by proper insurance.
Transportation insurance is a damage insurance policy. This is in contrast to so-called sum insurance, which reimburses a predetermined amount at a fixed time. Damage insurance, on the other hand, provides coverage only when actual damage occurs. The amount of the payout is based on the amount of damage.
Both carrier and shipper can insure against damages. Below we detail the various ways in which both client and carrier can obtain insurance.
Transportation insurance for transportation companies
Carrier Liability Insurance
In most cases, the carrier is liable for damage to transported goods. However, in most cases, this liability of the carrier is limited to a maximum amount of €3.40 per kg of transported cargo. This limitation does not apply when there is intent on the part of the carrier.
For many types of road transport within the Netherlands, both the rules of the Civil Code and the so-called AVC, the General Transport Conditions 2002, apply. Internationally, the comparable CMR conditions usually apply.
The above terms and conditions represent the interests of both shipper and carrier. Therefore, we always recommend both parties to use these conditions as much as possible. These conditions are administered in the Netherlands by the Stichting Vervoeradres. You can download these conditions below. On the website of the foundation you can also find an English version as well as the CRM conditions.
The Stichting Vervoeradres administers general conditions for road transport and inland navigation. You can download these conditions free of charge and apply them in your transport contracts.
Since in many cases the carrier will still be ultimately responsible, it can cover its own liability by means of carrier's liability insurance. Because this insurance is based on the AVC and CMR, the insurance is also called AVC insurance or CRM insurance.
This carrier liability insurance is offered by private insurance companies. The amount of premium you pay depends, among other things, on the type of company (SME or self-employed), what kind of transports are carried out and up to what amount damage or theft is covered. For the latter, the usual amounts are somewhere between €500,000 and €1,500,000.
In short: make sure that the carrier drives according to the AVC (and CMR) and that the carrier has its own liability properly covered through carrier liability insurance.
Transport insurance for clients/shippers
Goods Transport Insurance
If the carrier transports the goods under certain transport conditions such as the AVC/CRM conditions, the carrier's liability in the event of unlawful acts is limited to the amount of € 3.40 per kg. If you wish to have the transported goods fully compensated, you can get this insured with transport insurance.
Thus, the basic principle is that the carrier is liable, but only up to a certain amount. In practice, this means that for valuable transports, the owner of the items being transported can be quite duped in case of damage.
To mitigate this risk for the customer, the customer can purchase goods transport insurance. This insurance ensures that the customer's damages are still compensated in case:
- The value of the transport is above AVC (€3.40 per kg) and CMR (+/- €9.50 per kg).
- The carrier cannot be held liable but can invoke force majeure, special risks, loading/unloading by the client or when incorrect information has been provided by the client.
- The carrier is unable to compensate the customer for the damage. For example, in case of bankruptcy of the carrier, but more often when the carrier is not insured.
Most insurers specialize in business goods transport insurance. An individual can also obtain such insurance even for a one-time shipment.
In short, we always recommend that customers properly insure goods being transported by a carrier. This is especially true for valuable goods.
Freight transport insurance premium
To determine the amount of the premium for goods transport insurance, the insurer must have a good idea of the value of the goods and the possible risks. As a rule, the following data are requested:
- NAW data
- Clear description of items to be insured
- What amount do you want to receive in case of damage?
- What is the maximum value of goods present at any time?
- Insured Journey: From where to where are the goods going? Are the goods still stored somewhere in between? If yes, where (address, building type)? For how long? What is the maximum value there?
- How will the goods be transported? In the case of shipments by ocean-going vessel, what is the maximum number of containers going aboard the ocean-going vessel. What is the name of the ship.
- How are the goods packed?
Insurance for own transportation of own goods
If you use your own car or van to transport your own goods (trade, tools), you may want to consider self-haul transport insurance. This insurance provides coverage for damage or loss of your company's goods that you transport yourself. This can be useful if, for example, you deliver items to customers yourself or work on location with a van and bring your own tools.
Transport insurance policies compared
| Goederentransportverzekering | Eigen vervoerverzekering | Vervoerdersaansprakelijkheidsverzekering | |
|---|---|---|---|
| Voor wie? | ✅ Jij (particulier) of jouw bedrijf (zakelijk) is eigenaar van de te vervoeren goederen | ✅ Jij (particulier) of jouw bedrijf (zakelijk) is eigenaar van de te vervoeren goederen | ✅ Jouw bedrijf vervoert de goederen maar is niet de eigenaar van de goederen. |
| ✅ Je huurt een transportbedrijf in om jouw goederen te vervoeren. | ✅ Jij vervoert de goederen zelf met een eigen of gehuurd voertuig. | ✅ Je transporteert goederen van derden, particulier of zakelijk. Bijv. je bezorgt een pakket van een klant | |
| Wanneer kies je hiervoor? | ✅ Als je eenmalig of regelmatig spullen met een behoorlijke waarde laat vervoeren door een transporteur. | ✅ Als je eenmalig of regelmatig spullen met een behoorlijke waarde zelf vervoert. | ✅ Onder de AVC/CMR condities ben je aansprakelijk tot €3,40 p/kg lading. |
| Wat als ik me niet verzeker? | ✅ Dan is de transporteur in veel gevallen aansprakelijk voor maximaal € 3,40 p/kg lading. Waarde daarboven komt voor jouw rekening. | ✅ Niet-verzekeren zorgt dat je zelf de gehele mogelijke schade betaalt. | ✅ Als je als transporteur niet je aansprakelijkheid afdekt met een verzekering, ben je op zijn minst aansprakelijk voor iedere € 3,40 p/kg lading en in sommige gevallen voor een hoger bedrag. |
What does transportation insurance cost?
Goods transport insurance prices
The price of goods transport insurance is usually based a percentage of the daily value of the goods. Of importance is up to what amount you want to be insured and what kind of products are involved. Also important may be whether the freight is being transported internationally or within the Netherlands. The premium is usually a few percent of the product value. There is often a small administration fee on top of this. Since the carrier's liability is quite low, it may pay off with somewhat more expensive products where there is a real chance of damage, to take out goods transport insurance.
Carrier liability insurance rates.
Carrier liability insurance is purchased by the carrier. The amount of the premium depends in part on the type of transportation offered by the carrier and the size of your company. Also, of course, what exactly is covered is considered. What amount above the CMR/AVC limit of €3.40 per kg is covered? Does the coverage apply within the Netherlands or also internationally? What other damages are covered?
Below are estimates of the cost of a transportation insurance premium for transportation companies:
- General distribution transport
- light truck: €300 to €400 per month
- heavy truck: €400 to €500 per month
- truck with trailer: €500 to €600 per month
- Wagonload transport
- truck with trailer: €500 to €600 per month
- tractor with trailer: €500 to €600 per month
- Conditioned transport / freezer transport
- truck with refrigerated engine: €400 to €500 per month
- truck with trailer with refrigerated engine: €600 to €700 per month
- tractor with semi-trailer with refrigerated engine: about €600 per month
- Tank transport
- Tractor with trailer including compressor: €600 to €700 per month
In general, insurance costs (per vehicle) are between €300 and €800 per month.
For more information for B2B and international transportation insurance, we suggest you take a moment to review this guide and possibly request quotes.
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