Sending Goods to Customers? Learn About Single Transit Insurance with ZippySure

When sending your goods to a customer, your goods will be exposed to elements out of your control such as roads, weather and handling. Single Transit Insurance provides coverage for one shipment on one journey. With ZippySure, you can easily arrange single shipment insurance online. If you are an occasional shipper or looking to insure a high value order, this article will explain how single shipment insurance works and how it can benefit you.

What is Single Transit Insurance?

Single Transit Insurance provides coverage for one consignment from your warehouses/factory to the customer’s door. This means that once your goods have left their point of origin, your policy will take effect until the goods have arrived at their destination. It is often known as Single Transit Insurance Policy and is a form of Goods in Transit Insurance. Often, when the goods are being transported by road within India it is known as Inland Transit Insurance.

This is not an annual policy. You pay a premium to insure one journey and the policy will end once that journey has been completed.

Why do businesses need Single Transit Insurance?

Not all businesses will be shipping goods regularly. For example, a furniture manufacturer may only send a large order once a month. A trader may receive one high value consignment of electronics. A textiles company may send high value samples to a buyer in another state. Paying for an annual Marine Cargo Insurance could leave you paying for something that isn’t giving you great value.

If your shipment gets damaged or lost it can cause you to lose profit each month, put pressure on your relationship with the buyer and affect your working capital for your next order. Using Single Transit Insurance for Businesses, you can insure against this risk for one journey and won’t be paying for journeys that may never happen.

Common Risks During Transit

During transit, goods can face many risks whilst being loaded, on the road, transferred and delivered. The exact coverage will depend on your policy wording. Common risks include:

·         Road Accidents – Damaging or destroying your goods due to a road accident or rollover.

·         Theft – Goods being stolen or pilfered during transit.

·         Fire/Explosion – Fire or explosions inside the vehicle.

·         Water Damage – Water damage due to rain or flooding.

·         Poor Handling – Damage due to poor handling when loading/unloading.

·         Loss During Transshipment – Loss during transshipment.

No policy will provide 100% coverage. Usually poor packaging, delays, wear and tear and deliberate damage will not be covered.

Reducing Financial Risk

If your goods suffer a loss that is covered by your policy, your insurer will provide you with coverage based on the sum insured, exclusions and claims. This will reduce the financial risk of the damage.

For example, a wholesaler is sending garments from their warehouse in Ludhiana to a retailer in Jaipur. Before leaving, they will enter the invoice value, take pictures of the packed cartons and note down the vehicle registration number. They will then purchase a Single Transit Insurance Policy. If there is an accident during transit and some of the goods are damaged, they will have coverage. Whilst the buyer will still need to replace the goods, the financial risk will be reduced.

Single Transit Insurance vs Annual Marine Cargo Insurance

Annual or open Marine Cargo Insurance will cover multiple shipments over 12 months and is ideal for regular shippers. Whereas, a Single Transit Insurance Policy only covers one journey.

This doesn’t mean one is better than the other, it just depends on your shipping habits. If you are an occasional shipper or looking for Goods Transit Insurance for One-Time Shipments, then a single transit policy will provide you with targeted coverage. If you are shipping regularly, then an annual policy is usually the most sensible.

Selecting the Right Coverage

Before purchasing a policy, ensure you select the right one for your shipment. Things to consider:

·         Sum Insured – This should be the full value of your goods. If the value is less than the invoice value, your claim may be reduced.

·         Coverage – Some policies provide All-Risk coverage which covers physical losses/damage excluding listed exclusions. Others may only cover Named Perils.

·         Exclusions – Be sure to read what isn’t covered. Common exclusions are poor packaging, delays, wear and tear and inherent vice.

·         Documentation – Ensure you have your invoices, packing lists, transport documentation and policy certificate.

Single Transit Insurance for Goods Transportation works best if you arrange coverage before sending your goods from your warehouse. If you purchase after sending your goods, you won’t have any coverage.

Why Choose ZippySure?

ZippySure is an online tool which allows businesses to insure individual shipments.

Customer benefits include:

·         Easy online tool – Enter your shipment details and see what coverage you have.

·         Targeted for individual shipments – Ideal for occasional shippers or those looking to insure a high value consignment.

·         Compare quotes – See what premium, sum insured and policy details you will be paying.

·         Simple language – Understand what coverage and exclusions you have.

Whilst we cannot guarantee low premiums or claims, we do allow you to easily understand what Transit Insurance Online you have. Coverage will always depend on the wording of the policy with the insurer.

How To Purchase Single Transit Insurance Online

Purchase is easy and logical:

1.    Select the single transit option.

2.    Enter your shipment details including the type of goods, value, origin, destination and date of dispatch.

3.    Review the premium and sum insured. Always ensure the sum insured reflects the value of your goods.

4.    Read the exclusions and conditions.

5.    Purchase before your goods leave the warehouse.

6.    Ensure you have your policy certificate, invoice, packing list and transport documents.

This makes purchasing Single Transit Insurance easy with no complicated annual commitments.

Examples

A small furniture business based in Jaipur has received an order from a buyer in Ahmedabad. This is a large order for them and will be sent by truck which will take 2 days. The owner will enter their shipment details online, pay the premium and will have their policy. If there is an accident with the truck, they will have coverage.

An electronics trader has imported a consignment from another country. As this is a high value consignment and will be shipped a long distance, a single transit policy can provide coverage.

A textiles company has sent high value samples of fabric to a potential buyer in another state. This is a small order but high value. As they don’t ship every week, Single Transit Insurance for Sending Goods to Customers will provide coverage for this one journey.

These are hypothetical examples but represent the shipping habits of many traders, manufacturers, distributors and SMEs. Single Transit Insurance Policy for Small Businesses can be useful as it provides coverage for the journey.

Conclusion

When sending goods to customers there will always be some risk involved. Whilst you cannot control the roads, weather or handling of your goods, you can control whether you suffer a 100% loss from a covered loss. Single Transit Insurance provides targeted coverage for one consignment on one journey. ZippySure makes it easy to arrange this online. Next time you are shipping, consider what the value of your shipment is, what journey they are going on and what the policy details are. Decide whether single transit insurance is right for you. Visit ZippySure to find out more.

FAQs

What is Single Transit Insurance?

Single Transit Insurance provides coverage for one shipment on one journey. Once your goods have reached their destination, the policy will end.

Why do businesses need Single Transit Insurance?

If your shipment is damaged or lost it can cause you to lose profit each month. If you are an occasional shipper or have a high value consignment, single transit insurance will transfer the risk of this journey.

What does Single Transit Insurance Policy cover?

Depending on your policy wording. Commonly covered perils include road accidents, fire, theft (if included), water damage and poor handling. Usually, poor packaging, delays and wear and tear will not be covered.

Can I purchase Single Transit Insurance Online?

Yes! With online tools such as ZippySure you can enter your shipment details, see what coverage you have, pay the premium and download your policy document.

How is Single Transit Insurance different to annual Marine Cargo Insurance?

Single Transit Insurance provides coverage for one journey. Annual or open Marine Cargo Insurance provides coverage for multiple shipments over 12 months and is ideal for regular shippers.

Is Single Transit Insurance suitable for small businesses?

Yes! It can be useful for small businesses who ship occasionally, have a large one-off order or need to insure a high value consignment.

How can I purchase Single Transit Insurance with ZippySure?

Visit the ZippySure platform. Select the single transit option. Enter your shipment details. Review the premium and sum insured. Read the exclusions. Purchase before your goods leave the warehouse.