Introduction
Choosing the right transport insurance policy can significantly impact how well your business recovers from unexpected losses. In Lebanon’s evolving logistics landscape, understanding the difference between all-risks and limited coverage can help you make the best decision for your cargo protection needs.
Understanding All-Risks Coverage
All-risks transport insurance offers broad coverage for almost all types of physical loss or damage from external causes—unless explicitly excluded in the policy. This includes theft, collision, fire, weather events, and even mishandling during loading or unloading.
This type of insurance is ideal for high-value, fragile, or frequently transported cargo. It provides peace of mind and stronger protection for businesses that cannot afford the risk of uncovered loss.
Limited Coverage Explained
Limited transport insurance, also known as named perils insurance, covers only specific risks listed in the policy—such as fire, collision, or vehicle overturn. It’s a more cost-effective option, but it leaves gaps that could result in uncovered losses.
This type of policy suits businesses with low-risk cargo or predictable shipping patterns. However, the trade-off is reduced flexibility and potentially more difficulty when filing claims.
Comparing Benefits
Here’s a quick comparison to help you decide:
| Feature | All-Risks Insurance | Limited Insurance |
|---|---|---|
| Coverage Scope | Broad (except exclusions) | Narrow (named risks only) |
| Cost | Higher | Lower |
| Ideal For | High-value/sensitive goods | Predictable/low-risk cargo |
| Claims Process | Usually more straightforward | Proof of covered risk required |
| Risk Protection | Comprehensive | Selective |
Making the Decision
Choosing between all-risks and limited transport insurance depends on several factors:
- Value and sensitivity of your cargo
- Shipping frequency and routes
- Business size and risk appetite
- Budget for insurance premiums
Consulting a licensed insurance advisor in Lebanon can help you customize a policy that balances cost and protection according to your business needs.
Conclusion
Whether you choose comprehensive all-risks coverage or opt for a limited, named-peril policy, having some form of transport insurance is vital for your logistics success in Lebanon. The right policy can protect your bottom line and keep your supply chain moving—no matter what challenges arise.