Carrier Liability vs All Risk Cargo Insurance

As we mentioned before, cargo transportation is one of the main commercial activities in the world, it requires a lot of preparation, experience and a good logistic team behind to successfully accomplish each shipment.

But, as we know, nothing can be perfect. Even the most prepared shippers and brokers can encounter adversities that result in damages or losses for the cargo. So it is always recommended to have insurance that covers you and your customers assets from its consequences.

If you regularly import or export goods around the world, you may be familiarized with terms as “Carriers liability” and “All Risk” cargo insurance, but did you know everything about these two options?? So we are here for you. In this blog, we want to talk about carrier liability vs. all-risk cargo insurance and which is the better option for you.

What is carrier liability?

carrier-liability-vs-all-risk-cargo-insurance Legally, each carrier offer you a minimal amount of coverage for your shipment. | Photo taken from Freepik

Carrier liability is a minimal amount of insurance that legally each carrier need to offer in case cargo suffers damage or losses. You probably think “oh so there is no problem, my cargo is safe and sound, we have the carrier liability”. Well, it is more complicated than that!

Carrier liability has limitations in certain instances when the damage is due to an act of God (weather related), or act of the shipper (improper packaging or loading). In these two cases, the carrier cannot be at fault.

Carriers are required to pay only if they are proven to be responsible for causing the loss or damages and the amount to be paid is very restrictive, for the most part, carrier liability covers up to a certain dollar amount per pound and it also varies depending on the unit quantity and commodity type (freight class).

Speaking of payments, the refund by carrier liability as we said before is less, never expect to recover all the cargo value. Every carrier has their own policies and carrier liability, the restrictions and refund are stipulated on their contracts.

What is All-risk cargo insurance?

carrier-liability-vs-all-risk-cargo-insurance This insurance is the best known and preferred choice among importers and exporters | Photo taken from Freepik

“All-Risk” coverage is the most popular and comprehensive form of coverage for cargo. All-risk cargo insurance provides you coverage for physical damages and losses, as a result of external causes that may occur during the shipping process.

Different than the carrier liability, All-risk cargo insurance cover your cargo for its original value, so if something bad happens, you do not need to be worried, because you will recover every penny that you invest.

Keep in mind that even this kind of coverage has some exceptions, so it is subject to policy terms, conditions, and exclusions that are based on commodity, origin and destination, conveyance, amount to be insured, insurance company that you are using, etc. If you want to learn more about it please read our blog “Cargo insurance 101: the basics.”

So, what is the best option for you?

With no doubt, acquire All-risk cargo insurance is the best move for you and your company. With this insurance, your cargo will be fully protected against any calamity that may occur during the process, is the insurance with less restriction on the market, and can assure the total refund of your investment, meaning that your company will not be affected by the losses, economically speaking.

Start protecting your cargo NOW!!!

At Cargo Care Services your cargo’s safety is our main concern, so we can provide you:

  • Excellent rates for Air, Ocean, and Ground shipments.
  • We customized rates and conditions depending on customer needs, volumen, commodities, type of shipments, etc.
  • Simple processes to acquire insurance policies and certificates.
  • A worldwide network of adjusters and agents in case of a claim.

If you are interested in having a quote you can contact us here.