# Casualty Cargo Insurance

*Last updated: 2026-06-23*

> Casualty cargo insurance covers a carrier's or freight forwarder's liability towards third parties – shippers, consignees, or other supply chain parties – for loss, damage, or destruction of goods in transit.

Casualty cargo insurance covers a carrier's or freight forwarder's liability towards third parties – shippers, consignees, or other supply chain parties – for loss, damage, or destruction of goods in transit. The crucial distinction from cargo insurance: this policy protects the carrier's exposure, not the cargo owner's financial interest in the goods themselves. Liability typically arises when the carrier is found at fault or when a claim exceeds the statutory caps set by international conventions such as the CMR, CIM, or Hague-Visby Rules. In practice, those caps can fall well short of actual cargo values, leaving carriers with significant uncovered exposure on high-value consignments. Forwarders and carriers typically arrange this cover on an annual basis, with premiums calibrated to shipment volume and commodity mix.

**Source:** [https://www.irmi.com/term/insurance-definitions/cargo-insurance](https://www.irmi.com/term/insurance-definitions/cargo-insurance)

## Quick Facts

| Property | Value |
|---|---|
| Term | Casualty Cargo Insurance |
| Language | EN |
| Word count | 124 |
| Last updated | 2026-06-23 |
| Source | https://www.irmi.com/term/insurance-definitions/cargo-insurance |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/casualty-cargo-insurance](https://www.freight-academy.com/en/glossary/casualty-cargo-insurance)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/casualty-cargo-insurance](https://www.freight-academy.com/api/md/glossary/en/casualty-cargo-insurance)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/casualty-cargo-insurance/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/casualty-cargo-insurance/llm-summary?lang=en)*