# In-Transit Cargo Insurance

*Last updated: 2026-06-24*

> Cargo insurance protects the financial interest of the cargo owner against loss, damage, or theft while goods are in transit – closing the gap that carrier liability regimes leave open.

Cargo insurance protects the financial interest of the cargo owner against loss, damage, or theft while goods are in transit – closing the gap that carrier liability regimes leave open. Coverage typically operates on a warehouse-to-warehouse basis, attaching from the moment goods leave the shipper's premises and remaining in force until delivery to the consignee. Which party arranges the policy turns on the agreed Incoterms: CIF and CIP place the obligation on the seller, while FOB and EXW transfer it to the buyer. Carrier liability, by contrast, is capped by international conventions – such as Hague-Visby Rules for ocean freight or the CMR for road transport – and requires proof of fault; payouts rarely reflect full cargo value. Cargo insurance responds regardless of fault, making it the more reliable safeguard for high-value or vulnerable shipments.

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

## Quick Facts

| Property | Value |
|---|---|
| Term | In-Transit Cargo Insurance |
| Language | EN |
| Word count | 135 |
| Last updated | 2026-06-24 |
| Source | https://www.investopedia.com/terms/c/cargo-insurance.asp |

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