# Cargo insurance

*Last updated: 2026-06-26*

> Cargo insurance protects shippers, buyers, and freight forwarders against financial loss when goods are damaged, stolen, or destroyed during transport or storage.

Cargo insurance protects shippers, buyers, and freight forwarders against financial loss when goods are damaged, stolen, or destroyed during transport or storage. Coverage typically extends to accidents, fire, theft, water ingress, and storm damage, subject to the specific terms of the policy. In international trade, certain Incoterms impose an insurance obligation: under CIF, the seller must arrange minimum cover for the buyer; under CIP, a higher standard applies. Even where no contractual requirement exists, cargo insurance is strongly advisable, because carriers' liability under international conventions—such as the Hague Rules or the CMR—is often capped well below the actual value of the goods. A single-shipment policy covers one consignment; an open cover or floating policy extends protection across all shipments within a defined period, which is the standard arrangement for frequent exporters.

**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 | 131 |
| Last updated | 2026-06-26 |
| Source | https://en.wikipedia.org/wiki/Cargo_insurance |

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