GlossaryEN1 min readUpdated: Jun 25, 2026
International Transport Insurance Policies
The moment a shipment crosses a border, the question of coverage arises: international transport insurance policies protect cargo against loss, damage, and theft throughout the journey.
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Source: https://www.investopedia.com/terms/t/transportation-insurance.asp
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
The moment a shipment crosses a border, the question of coverage arises: international transport insurance policies protect cargo against loss, damage, and theft throughout the journey. Unlike carrier liability—which is legally capped and typically covers only a fraction of the cargo's commercial value—cargo insurance indemnifies the owner or consignee directly. The internationally recognised benchmark is the Institute Cargo Clauses (ICC), which set out coverage levels ranging from all-risks protection to restricted basic cover, and define exclusions for war risks, inherent vice, and inadequate packaging. Premiums are calculated on the basis of cargo value, route, transport mode, and the shipper's claims history. Under Incoterms, the CIF clause obligates the seller to arrange minimum insurance cover for the buyer's account.
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