GlossaryEN1 min readUpdated: Jun 16, 2026
Cargo Transport Insurance
Cargo transport insurance protects shippers, freight forwarders, and importers against financial losses arising from damage, loss, or theft of goods in transit.
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Source: https://en.wikipedia.org/wiki/Cargo_insurance
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Cargo transport insurance protects shippers, freight forwarders, and importers against financial losses arising from damage, loss, or theft of goods in transit. Cover typically runs from point of origin to destination and includes risks such as breakage, moisture damage, collision, and theft; extended policies add war risk or sabotage coverage. Premiums are calculated on the basis of cargo value, trade lane, distance, and commodity type. Most policies are written against the Institute Cargo Clauses (A, B, or C), which standardise the scope of cover – Clause A providing the broadest all-risks protection. Cargo insurance should not be confused with the carrier's statutory liability, which is capped under international conventions and often falls well short of the actual cargo value. Under letters of credit, an insurance document is commonly a mandatory presentation requirement.
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