GlossaryEN1 min readUpdated: Jun 16, 2026

Cargo Liability Insurance

Freight forwarders, carriers, and transport operators take out cargo liability insurance to protect themselves against compensation claims when goods are lost or damaged in transit.

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Last updated: 16 June 2026Published: 19 June 2025

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

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Logistics Concept

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Definition & Explanation

Freight forwarders, carriers, and transport operators take out cargo liability insurance to protect themselves against compensation claims when goods are lost or damaged in transit. The policy covers the carrier's statutory liability towards the shipper or consignee – what the carrier legally owes under applicable law, which is not necessarily the full commercial value of the goods. This sets it clearly apart from the shipper's own cargo insurance, which indemnifies the actual goods value regardless of fault. Coverage limits and deductibles reflect the transport mode, commodity type, and the operator's risk profile; international liability regimes such as CMR (road), the Hague-Visby Rules (sea), or the Montreal Convention (air) typically define the relevant liability caps.

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Cargo Liability Insurance

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