I import product from China into North America on a regular basis.  The shipment values are small, maybe $5000 to $10000 USD each.  Since we have many shipments (at least 2 per month) our prices are quoted FOB China and we hire the freight comapny.  However, our freight company gives us the option of insurance or no insurance.  What should my policy be regarding whether to pay insurance or not?

 

Quoting from [John_Smith]:

I import product from China into North America on a regular basis.  The shipment values are small, maybe $5000 to $10000 USD each.  Since we have many shipments (at least 2 per month) our prices are quoted FOB China and we hire the freight comapny.  However, our freight company gives us the option of insurance or no insurance.  What should my policy be regarding whether to pay insurance or not?

 

It depends on the safty of the shipping and the value of your goods.  Think over it, then  you will get your answer.

Always ask for insurance, for the following reasons:

1. Anything can happen during the several weeks your shipment is on way, so you have some financial security.
2. The insurance policy can confirm your ownership of the goods in case there is any problem with the documents or your buyer needs some security.

First it seems useless, until the first shipment catches fire or gets seaspray.

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Insurance is must for the shipment. Natural calamities, unexpected events like burglary etc may happen at any time. The rate of insurance is also very meagre and affordable under the overheads. Hence the insurance is indispensable.

actually, I think insurance is a necessary thing!
Because you do not know what will happen!
If you get insurance from shipping agent, then you get guarantee from them!
So better to get the insurance!

can tell me somebody if is necessary the insurance for a package from cameroon from chemicals research. and my package costs 67 euro and the insurance can be 200 euro ? and he told me about insurance after i payed not before. please help me