GlossaryEN1 min readUpdated: Jun 13, 2026

Liability for indirect loss

When a transport incident or service failure occurs, consequential losses often exceed the direct damage to goods themselves: production shutdowns, lost sales, costs for emergency rerouting.

Last updated: 13 June 2026Published: 27 January 2026

Source: https://www.investopedia.com/terms/i/indirectloss.asp

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When a transport incident or service failure occurs, consequential losses often exceed the direct damage to goods themselves: production shutdowns, lost sales, costs for emergency rerouting. Carriers and freight forwarders typically exclude or strictly limit liability for such indirect damages in their standard terms – in contrast to liability for total loss or destruction. This limitation protects operators from exposure to unquantifiable business losses and keeps insurance costs manageable. Shippers of time-sensitive or business-critical cargo should consider supplementary contingency insurance to cover these gaps.

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Liability for indirect loss

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