Air Insurance

Customer management of air insurance refers to, in international trade, cargo transportation insurance for air freight that is taken out by the seller or buyer (depending on trade terms such as CIF, CIP, etc.). Its core lies in managing risks that may occur during air transport, such as loss, damage, and delay of goods. Use cases include: high-value, fragile, or time-sensitive goods shipped by air, such as electronic products, precision instruments, and fresh products. Precautions: it is necessary to clarify the party responsible for insurance (e.g., the seller insures under CIF, the buyer insures under FOB), the insured amount (usually 110% of the invoice value), the coverage (such as All Risks, WPA), and the deductible. The difference from marine insurance is that the duration of air insurance is usually 'warehouse to warehouse' but is affected by the characteristics of air transport, and the rates and risk assessment are different. In addition, air insurance does not cover pure economic loss caused by flight delays unless special delay insurance is purchased. Foreign trade practitioners should carefully check the policy terms to ensure consistency with letter of credit requirements and avoid refusal of payment due to insurance discrepancies.