GlossaryEN1 min readUpdated: Jun 16, 2026

Carriage Liability Insurance

When a driver damages a pallet during unloading, carriage liability insurance determines who ultimately bears the financial consequence.

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Last updated: 16 June 2026Published: 19 June 2025

Source: https://www.marsh.com/us/services/logistics-insurance/freight-insurance.html

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Logistics Concept

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Definition & Explanation

When a driver damages a pallet during unloading, carriage liability insurance determines who ultimately bears the financial consequence. This policy protects carriers against third-party claims arising from loss, damage, or delay to cargo in transit. Coverage limits are typically aligned with the applicable international conventions, though the precise scope varies by policy and transport mode. The insurance funds the carrier's discharge of statutory liability; it does not alter the underlying liability regime itself – whether CMR, the Warsaw/Montreal Convention, or IATA conditions. Proof of cover is commonly required for operating licences and commercial contracts alike. It should not be confused with cargo insurance, which the shipper or consignee takes out to protect the value of the goods themselves.

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