Today, Lao Feng will talk to you about logistics insurance. Everyone knows that in our international logistics transportation, we are an industry with a very long link. From business collection — warehouse loading — sea transportation — unpacking, sorting, warehousing, and listing at the destination port, sometimes it even takes two to three months to complete an order, so during this long process, there will be many special circumstances that may cause damage to the goods, so insurance is very important during this period.

Some time ago, a seller found feedback from Lao Feng. He had a cabinet with the goods delivered to the LASE warehouse. Well, when the cabinet was unloaded at the destination port, it was accidentally dropped when holding it, and the goods inside were damaged a lot. Then the customer went to the freight forwarder to claim compensation, but the freight forwarder was also unfair, because making a full cabinet of DDU cabinets also made a few hundred dollars, and they didn't cause damage during the transportation process. That's when there was a big problem with everyone today. Let's spread the word in detail Knowledge about insurance.

The two most common types of insurance among our cross-border e-commerce sellers are:

(1) All insurance
One is all insurance, and the second type is listing insurance. Well, all risks have actually been around for a long time. It can protect all the risks that occur from the time the goods enter the terminal to the time the ship is unloaded at the destination port, including natural disasters at sea, as well as common marine damage that we often see. What you should note here is that war insurance is not included. Well, depending on the product, the approximate rate is in the range of 8 parts per 10,000 to 3 thousandths. Well, this insurance mainly applies to traditional logistics. Well, after the rise of cross-border e-commerce, many sellers are not limited to goods; they only end up at the pier. He also hopes that insurance companies can keep his goods on the shelves.

(2) Listing insurance
Therefore, after 2019, the entire cross-border e-commerce industry saw the rise of a type called listing insurance. In addition to the offshore section where it has all insurance, we can understand that listing insurance will cover a little longer than all insurance, and its rate will also be a little higher than that of all our common insurances. Basically, it is between 2% and 1%, and it also varies depending on the product.

Sellers should pay attention to a few key points when purchasing insurance:

(1) Deductible amount
The first point is the deductible. All insurance companies have a deductible when applying for insurance, so the most common deductible now is a minimum deductible of 100 US dollars without compensation, or 10% of the damage to the goods. We can understand it this way, that is, if a shipment is lost 200 US dollars, then the insurance company will only pay you 100 US dollars, because its contract stipulates that 100 US dollars are not compensable, which is the minimum deductible. Then another one is that if I lose 10,000 US dollars due to cargo damage, he will only pay you 9,000 US dollars; this is 10%, and it won't pay.

(2) Insurance node
The second point is that we need to pay attention to an insurance application point. That is, when applying for insurance, we must ship the goods before they set sail. If the ship has already started, many times the shipping company will not accept claims. Also, if the goods have already been damaged and then invested, the insurance company will not pay compensation.