GlossaryEN1 min readUpdated: Jun 9, 2026

Cargo Insurance

Cargo insurance is distinct from general property insurance in that it specifically covers merchandise in transit – whether by sea, air, rail, or road.

Last updated: 9 June 2026Published: 19 June 2025

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

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Cargo insurance is distinct from general property insurance in that it specifically covers merchandise in transit – whether by sea, air, rail, or road. It indemnifies the cargo owner or freight buyer for total loss, partial damage, or theft during shipment from point of origin to final destination. The premium depends on cargo type, destination country, route, and coverage scope (All Risks, Named Perils, or restricted catalogue covers). Standard covers are Institute Cargo Clauses (ICC) A, B, or C as issued by the Institute of London Underwriters. Shippers may arrange the policy directly, through their freight forwarder, or assign it to the consignee; under CIF and CIP Incoterms, the seller bears the cost.

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Cargo Insurance

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