GlossaryEN1 min readUpdated: Jun 9, 2026

Cargo Liability Insurance

Freight forwarders and transport operators use cargo liability insurance to protect themselves against third-party claims for loss or damage to cargo during transit.

Last updated: 9 June 2026Published: 19 June 2025

Source: https://www.irmi.com/term/transportation/glossary/cargo-liability-insurance

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Freight forwarders and transport operators use cargo liability insurance to protect themselves against third-party claims for loss or damage to cargo during transit. The policy covers statutory liability arising from breach of transport duties, regardless of whether the damage results from negligence, force majeure, or other causes. Unlike the shipper's cargo insurance, which protects the value of goods, this coverage focuses on the carrier's liability to the shipper or consignee. Coverage limits and deductibles are determined based on transport mode, commodity type, and the company's risk profile.

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