Why Should Cargo Be Covered

Legally, all carriers must carry a minimum amount of insurance, known as carrier liability. … Therefore, shippers can request cargo insurance to protect their goods from loss, damage, or theft while in transit. Generally, goods are insured while being stored and while in transit, until they reach the buyer.

Why should you insure your cargo?

Cargo Insurance protects your investment, and covers your goods for loss, damage or delay. Without cargo insurance, all cargo is handled, stored and carried at the shipper’s, owner’s and consignee’s risk.

What is covered under cargo insurance?

Cargo insurance protects you from financial loss due to damaged or lost cargo. It pays you the amount you’re insured for if a covered event happens to your freight. And these covered events are usually natural disasters, vehicle accidents, cargo abandonment, customs rejection, acts of war, and piracy.