You’ll need insurance for many aspects of your import/export business, from employees to cargo.

2. 1. Insuring your employees
Once you hire employees, you’ll need to think about
caring for them. Workers’ compensation insurance
laws vary among states; check with your insurance
agent for details in your area. Workers’ comp covers
you for any illness or injury your employees might incur
on the job. If your employees work in your home office
and get injured there, your homeowners’ insurance
may refuse to pay on the grounds that it’s actually a
workers’ comp case. Check with your insurance agent
regarding what you need, then make an informed
decision.

3. 2. Export credit risk insurance
Thanks to the Export-Import Bank of the United States, you can
purchase several types of export credit risk insurance designed
specifically for the newbie exporter and small- to mid-sized
enterprises. These policies protect you in the event that your
foreign buyer decides not to pay you for either commercial or
political reasons.
The Ex-Im Bank (and the United States) hope policies such as
these will encourage both you and your financial institution to take
on higher-risk foreign markets.

4. Small-business policy
This multibuyer policy requires that you insure all your export credit
sales with Ex-Im; it’s designed to free you from the “first-loss”
deductible of most commercial policies. To take advantage, you
must have an export credit sales volume of less than $5 million in
the past three years before application, your company must qualify
as a small business under the Small Business Administration’s
definition of the term and you must have been in business at least
one year with a positive net worth. How do you find out if you qualify?
Call the SBA’s Office of Size Standards at (800) 827-5722, or
check its website.

5. Umbrella policy
This policy boasts the same coverage and eligibility as the small-
business policy above, but it allows you as an export management
company or export trading company to act as an administrator or
intermediary between Ex-Im and your clients.

6. Short-term single-buyer policy
This one, which covers a single or repetitive sale, is for the
exporter who doesn’t want to insure everything with Ex-Im.
A special reduced premium is offered to small businesses.

7. 3. Cargo insurance
When it comes to cargo insurance, to mangle a well-
known advertising maxim,
“Don’t let your merchandise leave home without it.”
The cost of the insurance usually runs about 1 percent
of the insured value, although this varies with the type
of goods and method of shipping.

8. Avoiding insurance claims
Out on the high seas, your cargo may be subjected to rough and stormy
weather. On the docks, it can be equally buffeted about by tough
longshoremen. What can you do to help ensure your cargo doesn’t
become a marine insurance claim?
As a newbie trader, your best bet will be to purchase insurance through
your freight forwarder, who has a blanket policy, or directly from the air
carrier. As you grow, you may wish to purchase a blanket policy of your
own, which will cover you for everything you ship over the course of a
year.

9. 1. Pack with dock loading and unloading procedures in mind
Your cargo may be slung around (or skewered) by
anything from a forklift to a sling or net, and then, if it
survives that, left outdoors to rot. Often, cargo is
“stored” on port decks or out on airplane cargo
tarmacs, without any covering. If you’re unfamiliar with
overseas port operations and don’t have the right
packaging, you can lose cargo

10. 2. Pack to expect Mother Nature’s worst.
Container loads can shift during heavy seas and
storms. Someone else’s cargo can smash into yours
-- or vice versa. A sea voyage may be good for a
human’s health, but it can be murder on merchandise.
Think heat and humidity, salt air (which is incredibly
corrosive), rain and sea spray. When any or all of this
gets into your containers, you can end up with rust,
blistering, mold, mildew and moisture damage.

11. 3. Pack to expect human nature’s worst.
Some people just can’t resist somebody else’s goods.
Theft can be a problem, especially when containers
are left on the docks for a long time.

12. With all these potential disasters in mind, pack smart. Use adequate
packaging materials; make sure your merchandise is cushioned against
blows. Waterproof everything possible. Have package exteriors shrink-
wrapped. Use waterproof lining on interiors. Coat exposed metal parts on
machinery, for example, with grease or some other rust arrester. Use
heavy strapping and seals. Discourage theft by eliminating trademarks or
content descriptions on container exteriors.
Source:
https://www.entrepreneur.com/article/288063?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+entrepren
eur%2Flatest+%28Entrepreneur%29
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