Trip transit is a one-time shipment of cargo—in other words, the cargo has one destination and only needs coverage for that short timeframe and route. This is different from the typical long-distance journeys of cargo traveling by ship.
A trip transit policy provides coverage for a specific, individual shipment of goods, rather than coverage for all shipments occurring during a policy term—for example, a 12-month term. This type of insurance also protects your cargo from all risks of physical loss or damage, including theft, loss, or fire while in transit, and can be extended to include temporary storage. Because it’s applicable to a one-time-only event, trip transit insurance typically includes a lower premium but higher rates. The policy can be written to cover the full value of the cargo or as excess coverage to supplement other existing policies, such as the transit limits included in a property or package policy.
Examples of Trip Transit
The need for trip transit insurance comes into play when the assured does not otherwise have a material transit exposure and does not have a cargo policy in place because the small limits included under the package or property policy are sufficient. Also, if the insured values or origin/destination for the one-time shipment fall outside the provided package limit of insurance or policy territory, your client may need trip transit insurance.
Here are some specific instances that commonly require trip transit coverage:
Relocating an office or lab/manufacturing plant.
Shipping a booth and equipment to a trade fair or exhibition.
Purchasing or relocating equipment to international destinations.
Relocating a server or EDP to a new facility or co-location.
Falvey Cargo frequently underwrites trip transit coverage as an accommodation for our valued clients and responds quickly to those last-minute requests. We write accounts of all sizes with no minimum premium. Falvey can help you review your package policy for geographic territory restrictions and limitations on business personal property in transit (including coverage for used goods). For unique, one-off shipments of high-valued or highly sensitive equipment, your Falvey underwriter can involve our ProTecht team to review the packaging, routing, and carrier particulars, as well as provide best practice recommendations to help your cargo arrive safely and on time.
If your company is planning a move, or has an unexpected shipment on a Friday afternoon, Falvey Cargo has an underwriting solution.