In import and export trade, the buyer and seller who is responsible for handling insurance must be decided based on the contract price agreed by both parties.

The export goods that are sold in FOB or CFR terms are insured by the buyer, and the exporter has no obligation to insure.

However, the seller must bear the risk of accidental loss of the goods before the exporter performs the delivery and before the goods are loaded from the warehouse.

You need to arrange insurance for this time by yourself. This time period does not need to be insured, but if there is an accidental loss during this time period, it can only be borne by the seller.

The exporter is responsible for insuring the export goods that are traded in terms of CIF and CIP.

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Export goods trade deals with cargo transportation insurance, and engages in the work of insurance types and insurance amounts, insurance processing, insurance premium delivery, and policy acquisition.

The type of insurance and the amount of insurance are determined at the contract negotiation stage. When an export company applies for insurance from an insurance company, it must apply for insurance in accordance with the contract.

Insuring is the basis for the insurer to assume insurance liability. The degree of protection of the insured goods varies with the type of insurance, and the insurance premium rate received is also different.

For policyholders, when choosing an insurance category for export cargo insurance, they must provide adequate protection for the insured goods, while considering the cost of insurance premiums.

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Generally, when choosing export cargo insurance, please refer to the following elements.

1) According to the characteristics of the nature of the goods, choose insurance sexually. For example, when insuring food and feed goods, choose WPA, short-term insurance and moisture insurance, and accept heat insurance.

Dirty products such as wool and cashmere are covered by WPA or additional WPA insurance, and stain insurance.

Home appliances, cameras, mobile phones and other products can be covered by WPA or WPA, and can be covered with damage, breakage, and theft insurance, but cannot be picked up.

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2) When choosing the insurance category, you must fully consider the possible damage to the packaging of the goods during transportation and the impact on the damage to the goods. It is important to note that the insurance company is not responsible for compensation for cargo damage caused by poor packaging or poor packaging.

3) The types of insurance vary by means of transportation. Marine cargo insurance Marine cargo, air cargo, and package transportation goods should be insured separately for land transportation insurance, air transportation insurance, and package transportation insurance.

4) The way of cargo transportation is different, and the insurance type of insurance should be adjusted accordingly. For example, cargo passing through the equator has a higher probability of being damaged by the cargo due to moisture and heat. Etc., etc

5) Changes in the international situation around the world and insurance types should also change accordingly. In the event of local war or tension, goods shipped to such areas should consider the danger of war.