Cargo Insurance

Cargo Insurance can cover your goods when being shipped both domestically as well as internationally.

Cargo Insurance is a critical staple for reducing the risks of financial loss when buying, selling or distributing goods both domestically and internationally. No matter how robust your loss prevention strategy may be, it is reported that 30% of all freight damage in transit is unavoidable and most losses occur on the way to or from the ports. Furthermore, the FBI estimates that up to $30 billion in cargo theft occurs every year.

Avoid the risk of uncovered losses

Shippers are often unaware that a freight forwarder such as International Freight Services hiring a trucker on their behalf has no liability for damage to cargo. Carriers do have liability for damage to cargo, and as such they carry motor truck cargo or cargo legal liability coverage. However, the certificate of insurance providing evidence of insurance coverage does not govern the rules of transit. The tariff or bill of lading governs the rules of transit and spells out the carrier liability for cargo. Law or tariff restrictions limit the liability of the carriers and the amount recoverable is usually much less than the actual claim amount.

Avoid the risk of uncovered losses

It is important to note that carriers are only liable (for a limited amount) if they are considered negligent. Carriers are not responsible for losses that are unforeseen or beyond their control.

Carriers are not held liable for:

  • Acts outside their control
  • Fire (unless caused by the actual fault or knowledge of carrier)
  • Acts of God (heavy weather, earthquake, lightning, hurricane, tornado, etc.
  • Acts of War
  • Acts of Public Enemies
  • Strikes, Riots & Civil Commotions
  • Insufficient packing, insufficient or inadequate marks

When purchased, cargo insurance attaches to the cargo while in transit with coverage being extended door to door. Cargo insurance pays regardless of whether or not the loss or damage was due to the carrier’s negligence. Furthermore, cargo insurance provides protection for the full commercial invoice value plus freight. The coverage attaches per the incoterms of the shipment or the agreed upon sales contract.

Perhaps most valuable to shippers, the cargo insurance is a first party insurance coverage. This means that in the event of a covered loss, the insurance company will pay out the claim to the shipper and then, if necessary, subrogate against the carrier. The shipper does not need to retain an attorney to sue for damages or prove negligence.

Coverage Conditions

Protect your financial interests

By purchasing cargo insurance, shippers secure the broadest possible coverage for their goods. Talk to International Freight Services about insuring all your shipments as well as goods in storage to ensure that you will be property compensated for unavoidable losses.


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