GlossaryEN1 min readUpdated: Jun 23, 2026

Casualty Cargo Insurance

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Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.irmi.com/term/insurance-definitions/cargo-insurance

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Logistics Concept

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Definition & Explanation

Casualty cargo insurance covers a carrier's or freight forwarder's liability towards third parties – shippers, consignees, or other supply chain parties – for loss, damage, or destruction of goods in transit. The crucial distinction from cargo insurance: this policy protects the carrier's exposure, not the cargo owner's financial interest in the goods themselves. Liability typically arises when the carrier is found at fault or when a claim exceeds the statutory caps set by international conventions such as the CMR, CIM, or Hague-Visby Rules. In practice, those caps can fall well short of actual cargo values, leaving carriers with significant uncovered exposure on high-value consignments. Forwarders and carriers typically arrange this cover on an annual basis, with premiums calibrated to shipment volume and commodity mix.

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Casualty Cargo Insurance

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