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Cargo Insurance | Freight-Academy™

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GlossaryEN1 min readUpdated: Jun 16, 2026

Cargo Insurance

Cargo insurance covers merchandise exclusively while in transit – from point of origin to final delivery, regardless of the mode of transport.

Quick Answer

Cargo insurance covers merchandise exclusively while in transit – from point of origin to final delivery, regardless of the mode of transport.

Unlike general property insurance, it responds specifically to loss or damage occurring during carriage and indemnifies the cargo owner or buyer against total loss, damage, or theft.

Coverage scope is defined by the chosen policy wording: Institute Cargo Clauses (ICC) A provide the broadest all-risks protection, while ICC B and C are more restrictive and exclude specific causes…

Last updated: 16 June 2026Published: 19 June 2025

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

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Cargo Insurance

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Definition & Explanation

Cargo insurance covers merchandise exclusively while in transit – from point of origin to final delivery, regardless of the mode of transport. Unlike general property insurance, it responds specifically to loss or damage occurring during carriage and indemnifies the cargo owner or buyer against total loss, damage, or theft. Coverage scope is defined by the chosen policy wording: Institute Cargo Clauses (ICC) A provide the broadest all-risks protection, while ICC B and C are more restrictive and exclude specific causes of loss. Premiums reflect cargo type, routing, destination region, and packaging quality. Shippers may arrange cover directly or through their freight forwarder; under CIF and CIP Incoterms, the obligation to insure rests with the seller.

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Recommended format: Source: Freight Academy – Cargo Insurance (https://www.freight-academy.com/en/glossary/cargo-insurance-6), accessed 2026-09-14
APA style: Freight Academy Editorial Team. (2025). Cargo Insurance. Freight Academy. https://www.freight-academy.com/en/glossary/cargo-insurance-6
BibTeX: @misc{cargoinsurance2025, title = {Cargo Insurance}, author = {{Freight Academy Editorial Team}}, year = {2025}, url = {https://www.freight-academy.com/en/glossary/cargo-insurance-6}, note = {Freight Academy, accessed 2026-09-14} }

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