GlossaryEN1 min readUpdated: Jun 22, 2026
Cargo insurance
Cargo insurance is a contract that protects the owner or title-holder of goods against financial loss caused by damage, total loss, or theft during transport by sea, air, or land.
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Source: https://en.wikipedia.org/wiki/Cargo_insurance
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Definition & Explanation
Cargo insurance is a contract that protects the owner or title-holder of goods against financial loss caused by damage, total loss, or theft during transport by sea, air, or land. Shippers and freight forwarders typically arrange it for high-value or fragile consignments; premiums are calculated on the declared cargo value, mode of transport, and coverage scope – from named-perils policies to all-risks cover. Under Incoterms CIF and CIP, the seller is contractually required to procure at least minimum cover on the buyer's behalf. The fundamental difference from carrier liability is one of depth: statutory limits under conventions such as the Hague-Visby Rules or the CMR frequently cover only a fraction of actual cargo value, and only a dedicated cargo policy closes that gap.
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