GlossaryEN1 min readUpdated: Jun 25, 2026
International Freight Insurance
International freight insurance is a contract of insurance covering goods in transit across borders – by sea, air, road, or rail – against loss, damage, theft, and related perils.
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International freight insurance is a contract of insurance covering goods in transit across borders – by sea, air, road, or rail – against loss, damage, theft, and related perils. The insurer indemnifies the insured party (exporter, importer, or freight forwarder) for proven claims up to the agreed policy limit. In maritime transport, coverage is largely standardized through the Institute Cargo Clauses (ICC A, B, and C): Clause A provides the broadest all-risks cover, while Clause C is limited to a narrow set of major casualties. Freight insurance must be clearly distinguished from carrier liability insurance: freight insurance protects the cargo interest itself, whereas carrier liability only covers the carrier's legal obligation to compensate – an obligation that is typically subject to low statutory caps per kilogram. Shippers and consignees arrange their own cover particularly when the applicable Incoterm, such as FOB or EXW, places no insurance obligation on the counterparty.
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