What should be included in cargo insurance

Properly insuring the freight in conjunction with good physical risk management is an important way to manage the financial impact of loss or damage. The Insurance coverage includes several options insuring from warehouse to warehouse covering common carrier limitation and the number of subcontractors. The limitations may include terrorism, strikes, riots, civil commotion risks, and “Act of God”.

Cargo insurance protects against all the risks of physical loss or damage to freight from the internal or external cause during the freight movement by land sea or by air. There still are some exclusions like packing however the insurance policy sometimes also says that the carrier is responsible for the loss.  

What is Cargo Insurance?

Cargo insurance protects you against financial loss if your cargo is damaged or lost. If your goods are damaged by a covered occurrence, it pays you the amount you are insured for. Natural disasters, vehicle accidents, cargo failure, customs refusal, acts of war, and piracy are typically covered incidents.

It is also distinct from carrier liability and insurance policies offered by dedicated cargo and freight insurance companies, freight forwarders, agents, and major brokers.

What is Marine Insurance?

Marine insurance is a type of policy that covers the damage or loss of ships, terminals, or any cargo or mode of transit by which property is transferred, retained, or acquired between the places of origin and the final destination. Offshore and onshore exposed property Marine Casualty, Hull, and Marine Liability are all covered under marine insurance. 

The word signifies an insurance policy that is expressly supplied to ships, boats, and, most importantly, the cargo that is carried in them. Marine insurance policy is an alternative to the broader phrase insurance.

What is Covered in Marine Cargo Insurance?

  • During a cargo journey, marine insurance protects you from disasters such as fire or explosion, sinking, and stranding.
  • Expenses caused as a result of a collision, overturning, or derailment of a land conveyance are reimbursed.
  • If the cargo is unloaded from a port of disturbance, compensation is offered for expenses.
  • Charges for general average sacrifice salvages are covered by insurance. 
  •  Protection from natural disasters such as earthquakes and lightning.
  • It also covers costs like survey fees, shipping costs, reconditioning costs, and legal fees.
  • It also covers things like being thrown overboard and being jettisoned.
  • It also covers the package’s entire loss, whether it is lost overboard or dropped during loading or unloading.

Key Features and Benefits of Marine Cargo Insurance

Availability of Flexible Coverage Options

A marine insurance policy with flexible Transit insurance coverage is offered to meet your insurance needs.

Worldwide Claims Settlement and Survey Assistance

You would not have to worry about your claim because marine insurance policies include worldwide claims settlement assistance.

Tailored Covers to Suit Your Needs

Marine insurance policies are available with customizable coverage to meet your specific insurance needs.

Comprehensive All-risks Coverage

A marine insurance policy provides complete coverage to protect your cargo from all potential threats.

Extensions for Strikes, Riots, and Other Perils

You can choose extensions in case of strikes, riots, and other calamities to supplement the coverage provided by the necessary insurance plan.


We would however conclude that the cargo insurance provides a very cost-effective method of covering the losses of the customer in freight movement as well as save the transporters who are partially ensuring the safety of freight. The service providers ensure the full protection of cargo. A small amount of premium paid ensures the security of data from the greater loss.

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