What Is Cargo and Transit Insurance?
Cargo and transit insurance helps protect goods during transport, with coverage that depends on the journey and your responsibility for the shipment.
What Does Cargo and Transit Insurance Cover?
Your Goods or Your Responsibility for Them
If you're shipping stock you own, you want protection for your financial interest in the goods. If you're hauling a customer's stock, you may be insuring your responsibility under the transport contract. Those arrangements can value and limit a loss differently, so the contract belongs beside the shipment details in your quote request. 6,3 6
The Whole Journey
Map the journey by road, air or water, including storage stops, and ask which parts the quote covers. 3,6| Shipment detail | What to clarify |
|---|---|
| Interest in the goods | Are you discussing your own interest or responsibility for another party’s cargo? |
| Transport stages | Which road, air or water legs does the quote address? |
| Storage stops | Which locations and periods of storage need to be considered? |
| Transport contract | How does the agreement affect the responsibility and amount being insured? |
Who Needs Cargo and Transit Insurance?
Consider cargo protection if you ship your own products or take responsibility for transporting someone else's goods. 7
Coverage Examples
These are examples, not coverage guarantees. Your policy terms and the facts of the claim determine what is covered.
What happened
A Shipment Arrives Damaged
Your goods arrive damaged after a truck journey and an overnight stop at a warehouse.
How Do You Compare Coverage and Costs?
Values, Limits and Contract Terms
Compare cargo values with the quote’s limits and valuation provisions, and ask how any transport contract affects the amount insured. 6International Sales
For an international sale, review who is responsible for arranging insurance under the agreed shipping terms. 3What Exclusions and Conditions Should You Check?
Late Delivery and Physical Damage
Ask whether delay or loss of market is excluded; physical damage to goods and the commercial cost of late delivery are different concerns. 6Loading, Security and Refrigeration
Discuss loading and unloading, security while vehicles are unattended and any refrigeration needs rather than assuming these are handled identically. 7How Does It Compare With Related Coverage?
The Truck and Its Load
Protection for cargo is a separate question from insurance for physical damage to the truck carrying it. 1,6Payment for an Export Sale
Export credit insurance addresses a buyer’s nonpayment; it is not the same buying decision as protection for physical cargo loss. 5,4What Do You Need for a Quote?
Prepare a description of the goods, typical and largest load values, travel areas and any storage locations for the quote discussion. 7A Shipment Brief for the Broker
| Prepare | How to use it |
|---|---|
| Description of the goods | Explain what is transported and any refrigeration needs. |
| Typical and largest load values | Compare the proposed limits and valuation with the loads you want considered. |
| Route and modes of transport | Identify the road, air and water stages to discuss. |
| Storage locations | Ask how stops away from the moving vehicle are treated. |
| Your interest and transport agreement | Distinguish goods-owner concerns from carrier responsibility. |
| Loading and unattended-vehicle arrangements | Discuss handling and security provisions in the offered coverage. |
Key Terms in Plain English
Cargo Interest
Your financial interest in goods, which differs from your liability under a transport contract. 6,3
Valuation
The basis used to value the cargo. Compare it with shipment values, limits and contractual obligations. 6
Frequently Asked Questions
Does Cargo Coverage Pay for Late Delivery?
It may not. Delay and loss of market can be excluded even when physical loss or damage to the goods is covered. 6
Is the Truck Insured Under Cargo Coverage?
Who Arranges Cargo Insurance for an International Sale?
Review the shipping terms agreed with the buyer. Those terms assign responsibility for arranging insurance; confirm that the insurance arrangements match your agreement. 3
Which Insurance Providers Offer Cargo and transit?
Sources
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