Facts you should know about Cargo Insurance


Cargo insurance is unique compared to other insurance policies. This is because ocean, air, and ground shipments are under a set of laws that limit the liability of carriers.

So how do you better protect your merchandise when it is in transit? Here are some things you should know about cargo insurance and why it’s convenient to add this insurance to your shipments.

1. Accidents occur.

Products shipping is more reliable and more efficient than ever, but there are still numerous reasons goods could be damaged in transit. Investing in cargo insurance can protect you and your business when damage arises.

2. Damaged goods are the shipper or consignee’s obligation.

International shipping laws favor the carrier, limiting carrier liability helps promote trade between nations. So, it is your responsibility what happens to cargo, you can be covered by a cargo insurance policy and when you prepare to ship, make sure your products are packed as securely as possible to minimize the risk of any damage.

3. Purchasing in CIF terms does not mean that you are totally covered.

If you allow the shipper to cover the insurance, they are only required to meet the minimum coverage. Usually, coverage is only from port-to-port. Also, when filing claims you are dealing with a foreign company, and it can be very time-consuming. That´s why acquiring your own Cargo insurance is a piece of mind for you.


3. The underwriting process is fluid.

Many insurance policies are subject to strict underwriting mechanisms, but cargo insurance (depending on the commodities) lacks rigid guidelines on what’s required. Our cargo insurance policies are all-risk coverage and can be tailored to your particular risks.


Business photo created by katemangostar – www.freepik.com

4. Make sure you understand your policy.

A common misunderstanding when hiring an all-risk insurance policy is to assume that the policy will automatically cover any accident involving your merchandise. This is not necessarily the case. Instead, most all-risk policies state a specific set of situations they do not cover, so be aware of that.

5. You must communicate the nature of your goods.

If you are seeking coverage, you must disclose, commodity, conveyance, merchandise value, and any other material facts that could influence the underwriter in their assessment of the risk. After you provide this information, the insurance company’s decision to accept or decline coverage. The insurance company may also agree to provide coverage but at a higher insurance premium.

6. With Cargo Insurance you take the control

Cargo insurance gives you greater peace of mind because you will know some important aspects as:

  • If there was a claim, would it be filed overseas or in your place?
  • How much money you will receive back? Is there any deductible?
  • Will a claim be paid in your currency?


The ins and outs of cargo insurance can be overwhelming. That’s why you can count on companies like CARGO CARE SERVICES who are able to advise you on the best cargo insurance policy for your shipments and support you in the claim process. CONTACT A CARGO INSURANCE EXPERT TODAY!