Repair Insurance

Repair Insurance is a supplementary coverage under cargo transportation insurance. It primarily covers the repair costs incurred when goods are damaged due to accidents during transit and are sent to a designated repair location for restoration, as well as reasonable transportation, storage, and other expenses arising from the repair. It typically applies to high-value, repairable mechanical equipment, precision instruments, electronic products, etc. Common use cases include exporting large equipment or long-term leased equipment, where the buyer or seller wishes to protect against repair costs. Notes: This coverage is not independently underwritten and must be attached to a main policy (such as All Risks); repair costs usually have a deductible or compensation limit; the insurer may require a designated repairer. Differences from other terms: Unlike 'All Risks,' which compensates for direct loss of goods, Repair Insurance specifically targets repair costs; unlike 'Product Liability Insurance,' which covers liability for third-party damage caused by products rather than repair costs. Foreign trade practitioners should specify in the contract the insuring party, insured amount, and claims process for Repair Insurance.