INSURANCE
ON PROTOCOL.

The coverages that come up

Different buyers ask for different combinations, but these are the ones that appear in vendor agreements.

• General liability — the baseline, commonly at $1–2M per occurrence
• Product liability — for harm caused by the goods themselves
• Cargo — goods in transit, separate from a carrier's limited liability
• Warehouse or stock — goods at rest, which cargo does not cover

Additional insured is a specific request

Naming a buyer as an additional insured extends your policy to cover them for claims arising from your product. It is not the same as sending them a copy of your certificate, it usually requires an endorsement, and insurers charge for it.

Carrier liability is not cargo insurance

A carrier's statutory liability is typically capped by weight and can be far below the value of what you shipped. A full-value claim against a limited liability leaves the difference with whoever owned the goods — which, depending on the Incoterm, is you.

Certificates expire on a date nobody watches

Cover renews annually and a buyer's system will flag a lapsed certificate before your calendar does. The lapse itself is rarely the problem; discovering it when a delivery is refused is.