What is Cargo Insurance?

Insurance that generally protects shipments from loss, damage, or theft while in transit. This coverage is beyond basic claims insurance that may be provided, and it will reimburse for the designated value of the goods if a covered event occurs while the freight is in transit. The cost you pay to insure your items (called the premium) is generally a fraction of the actual value of the goods.

Cargo insurance policies can cover cargo carried by land, or by air and sea (see Marine Cargo Insurance).

Policies and options vary greatly, but covered events often include natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy. Issues that arise from areas where the shipper has a lot of control, including damage due to poor packaging, flawed products, or hazardous products, may not be covered.

Also known as Freight Insurance.

Related Terms

Marine Cargo Insurance Importer of Record Exporter