GlossaryEN1 min readUpdated: Jun 22, 2026
insurance coverage
When a shipment leaves the warehouse, insurance coverage must already be in place – starting at the first point of transit, not at loading.
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Source: https://www.freightos.com/freightpedia/logistics-insurance/
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Logistics Concept
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Definition & Explanation
When a shipment leaves the warehouse, insurance coverage must already be in place – starting at the first point of transit, not at loading. Coverage defines the actual protective scope granted by a valid policy: which risks are covered, during what period, and within which geographic boundaries. In transport practice, typical covered risks include physical damage, total loss, handling incidents, and theft – but the precise scope varies considerably depending on the mode of transport, route, cargo type, and the policy clauses selected. Coverage should be distinguished from the insurance policy itself: the policy is the document; coverage describes what that document actually protects against.
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