What is the general stance of cargo insurance companies towards insuring used equipment or machinery?

Cargo insurance companies typically express caution when it comes to insuring used equipment or machinery due to the inherent risks associated with these items. Used equipment is often viewed as having a higher potential for hidden defects, diminished value, and increased likelihood of failure compared to new items. This apprehension arises from the uncertainty surrounding the condition and maintenance history of such equipment, which can complicate the underwriting process.

Insurers often perceive used items as more challenging to evaluate and insure because they may not have the same established market value or reliability indicators as new products. As a result, many cargo insurance companies are inclined to limit or deny coverage for used machinery and equipment, viewing it as a higher-risk category. This general attitude can lead to a significant reduction in the willingness to provide coverage for these items altogether.