GlossaryEN1 min readUpdated: Jun 13, 2026

Cargo insurance

Cargo insurance covers the financial risk of damage, total loss, or theft of goods while in transit – regardless of transport mode.

Last updated: 13 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Cargo_insurance

Category

Incoterms 2020 Simulator: Who bears costs & risk?

Reading time

1 min

Words

107

Mentioned in

–

Cargo insurance covers the financial risk of damage, total loss, or theft of goods while in transit – regardless of transport mode. It gives shippers and consignees a direct claim against an insurer, rather than having to pursue limited carrier liability under conventions such as the Hague-Visby Rules or the CMR. Under CIF or CIP Incoterms, the seller is obliged to provide cover; under other terms, the buyer typically arranges its own policy. Premiums depend on commodity value, trade route, mode of transport, and the loss history of the cargo category. In documentary credit transactions, banks routinely require an insurance certificate as one of the presentation documents.

Next steps

Tools that match this term

Compare IncotermsClarify duties, cost and riskOpen Check transport insuranceEstimate coverage and premiumOpen Calculate transit timeEstimate duration per transport modeOpen

Related Terms

You might also be interested in these terms

Air Cargo Community Systems

Freight forwarders, airlines, airport operators, and customs authorities rely on Air Cargo Community Systems to exchange shipment …

Learn more

All-Cargo Aircraft Operations

All-cargo aircraft operations designate flights conducted by freighter aircraft configured exclusively to carry freight and mail, …

Learn more

Extra Risk Insurance for Cargo Transport

Shippers and freight forwarders turn to extra risk insurance when standard cargo cover leaves gaps for particularly valuable, sens…

Learn more

TSA Air Cargo Security

The U.S. Transportation Security Administration (TSA) operates a comprehensive security program for air cargo transported on both …

Learn more

Cargo ship

The term cargo ship serves as a broad umbrella for seagoing vessels designed primarily to carry goods rather than passengers or li…

Learn more

Compensation for loss of cargo

Compensation for loss of cargo is the indemnity a carrier or transport insurer owes when goods are wholly or partially lost in tra…

Learn more

⚖️ ICC Incoterms 2020

Incoterms 2020 Simulator: Who bears costs & risk?

Analyze all 11 Incoterms 2020: cost matrix, risk timeline, insurance gap detector and customs responsibility – free, no login required.

Incoterms Simulator →

Logistics knowledge straight to your inbox

Weekly: Top news, industry facts and insights from the world of logistics – free.

Cargo insurance

Next steps

Related Terms

Air Cargo Community Systems

All-Cargo Aircraft Operations

Extra Risk Insurance for Cargo Transport

TSA Air Cargo Security

Cargo ship

Compensation for loss of cargo

Incoterms 2020 Simulator: Who bears costs & risk?

Logistics knowledge straight to your inbox

Community Questions & Answers