GlossaryEN1 min readUpdated: Jun 16, 2026
Cargo Insurance Policy
A Cargo Insurance Policy is the insurance contract between an insurer and a shipper or cargo owner, protecting goods against loss, damage, or theft during transit.
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Definition & Explanation
A Cargo Insurance Policy is the insurance contract between an insurer and a shipper or cargo owner, protecting goods against loss, damage, or theft during transit. It defines the covered perils, sets the coverage limit, deductible, and policy term, and specifies exclusions along with claims notification requirements. As the master agreement, it provides the contractual basis from which individual Cargo Insurance Certificates are issued for specific shipments. Open cover policies – automatically extending protection to multiple consignments over a defined period – are widely used in international trade and substantially reduce administrative overhead. The cargo insurance policy should not be confused with cargo liability insurance, which covers the carrier's statutory liability rather than the commercial value of the goods.
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