Cargo Insurance

What is cargo insurance?

Cargo insurance is a type of insurance coverage that a cargo owner purchases to protect against loss or damage to goods being transported by land, air, or sea. It is a specialized kind of insurance that is tailored to the risks involved in transportation.

Cargo insurance covers the value of the goods being transported, as well as other specified expenses associated with the cargo.

Cargo insurance can be purchased on a per-shipment basis or as a term policy covering multiple shipments over a set period of time. The language in cargo insurance policies determines when the insurer is obligated to pay for cargo loss or damage. Policy wording varies by insurer and cargo type, so it is essential to review your specific policy to understand its inclusions and exclusions.

Why isn't carrier liability enough?

Carrier liability is usually capped well below the value of your goods, and the limit depends on the transport mode and contract terms. A lost container of electronics could be reimbursed for a fraction of its value. Cargo insurance fills that gap. It also helps if general average is declared, where cargo owners share the cost of a sea emergency.

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