Cargo insurance is a policy that protects goods against physical loss, damage, theft, or certain transit risks while they move by ocean, air, road, rail, courier, or multimodal transport. It helps cargo owners recover financially when shipments are damaged, lost, stolen, or affected by covered events during transit or temporary storage. Cargo insurance is important because carrier liability is often limited and may not cover the full commercial value of the goods, freight costs, duties, or expected profit.
Cargo insurance provides financial protection against loss or damage to goods during transportation by sea, air, road, or rail.
Coverage Types
- All-Risk: broadest coverage, any external cause unless excluded
- Named Perils: specific listed events only such as fire, sinking, or collision
- Total Loss Only: covers only complete loss of the entire shipment
Common Exclusions
- Inherent vice
- Delay
- War and strikes unless endorsed
- Inadequate packing by the shipper
Carrier liability limits in bills of lading are often far below the true value of goods. Separate cargo insurance is strongly recommended.
For related logistics context, see Dedola’s global logistics services and glossary entries on All-Risk Coverage, General Average, Inherent Vice, and Declared Value.
