Not all Insurance is Created Equal. 

In 2019, Mexico was the United States' largest trading partner with $614.5 billion in total (two-way) goods.

COVID-19, tariffs, and ocean carrier limitations have accelerated companies' plans to nearshore their manufacturing operations to Mexico.

This manufacturing shift has led to plentiful opportunities to move raw materials and products both north and southbound. These opportunities do come with some inherent risks. The media has documented Northern Mexico's issues with cargo theft and hijacking. Shippers caught with cross-border or Mexican cargo insurance risk being financially responsible for cargo lost or damaged in Mexico.

Shippers may obtain the necessary insurance coverage that complies with their shippers' requirements. After an incident, they come to find out that they have a high deductible and that their standard policy does not cover loss or damage in Mexico.

In the United States, a U.S.-based carrier can be liable for up to $1 million in cargo loss. Conversely, Mexico only requires carriers to be liable for 2.5 cents a pound. Many shippers believe that a carrier's $100,000 cargo insurance provides coverage in Mexico but in most cases that is not the case. 

Taking out a cross-border policy before shipping eliminates any coverage question regardless of which side of the border a loss occurs. Smart shippers provide their customers this peace of mind and security.