# Cargo insurance

*Last updated: 2026-06-26*

> Cargo insurance is a policy that protects goods against physical loss or damage from the point of loading through transit to final delivery at destination.

Cargo insurance is a policy that protects goods against physical loss or damage from the point of loading through transit to final delivery at destination. Covered perils typically include breakage, theft, fire, contamination, and deterioration; delay is excluded unless a specific endorsement is added. The insured party may be the seller, buyer, or freight forwarder – the determining factor is who holds the insurable interest, which usually follows from the agreed Incoterm. Policies almost universally reference the Institute Cargo Clauses (ICC A, B, or C) as the underlying conditions framework, with ICC A providing the broadest all-risks cover. Letters of credit frequently require a cargo insurance certificate as a mandatory document before payment is released.

**Source:** [https://www.investopedia.com/terms/c/cargo-insurance.asp](https://www.investopedia.com/terms/c/cargo-insurance.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Cargo insurance |
| Language | EN |
| Word count | 115 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/c/cargo-insurance.asp |

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