# Cargo insurance

*Last updated: 2026-06-22*

> Cargo insurance covers the financial risk of physical loss, damage, or theft of goods in transit, giving the insured a direct claim against an insurer rather than forcing reliance on the limited liability regimes carriers operate under – such as the Hague-Visby Rules at sea or the CMR Convention for road transport.

Cargo insurance covers the financial risk of physical loss, damage, or theft of goods in transit, giving the insured a direct claim against an insurer rather than forcing reliance on the limited liability regimes carriers operate under – such as the Hague-Visby Rules at sea or the CMR Convention for road transport. A policy can cover a single shipment or be arranged as an open cover applying to all consignments over a defined period. Under CIF or CIP Incoterms, the seller must procure at least minimum insurance cover; under all other terms, the buyer arranges its own policy. Premiums are calculated on commodity value, trade route, mode of transport, and the loss history of the cargo category. In documentary credit transactions, banks require an insurance certificate as one of the stipulated presentation documents.

**Source:** [https://en.wikipedia.org/wiki/Cargo_insurance](https://en.wikipedia.org/wiki/Cargo_insurance)

## Quick Facts

| Property | Value |
|---|---|
| Term | Cargo insurance |
| Language | EN |
| Word count | 133 |
| Last updated | 2026-06-22 |
| Source | https://en.wikipedia.org/wiki/Cargo_insurance |

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