# Insurance Coverage for Freight Movement

*Last updated: 2026-06-25*

> When a consignee receives a damaged shipment and the carrier's statutory liability falls well short of the actual loss, cargo insurance fills the gap.

When a consignee receives a damaged shipment and the carrier's statutory liability falls well short of the actual loss, cargo insurance fills the gap. It protects goods against loss, damage, and theft in transit—by road, rail, air, or sea—covering the financial exposure from origin through to final delivery. Three factors define a policy's practical value: the scope of cover (all-risk versus named perils), the sum insured, and the moment coverage attaches (warehouse-to-warehouse or from commencement of transit only). Cargo insurance is distinct from carrier liability: international conventions cap carrier liability at fixed amounts per kilogram or unit, and a claim requires proof of fault, whereas cargo insurance responds regardless of who is at fault.

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

## Quick Facts

| Property | Value |
|---|---|
| Term | Insurance Coverage for Freight Movement |
| Language | EN |
| Word count | 114 |
| Last updated | 2026-06-25 |
| Source | https://www.investopedia.com/terms/f/freight-insurance.asp |

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