Cargo insurance helps protect the financial value of goods while they are being transported.<\/p>\n
International shipments can be exposed to loss or damage during ocean, air or inland transportation. Depending on the policy, cargo insurance can provide coverage for specified risks while the goods are in transit.<\/p>\n
Cargo insurance<\/a> should not be confused with the carrier’s liability. International transportation agreements and carrier terms can limit how much a carrier is responsible for when cargo is lost or damaged, so the amount recoverable from a carrier may be substantially less than the commercial value of the shipment. The U.S. Department of Commerce recommends that businesses consider cargo insurance for international shipments rather than assuming carrier liability will cover the full loss.<\/p>\n International freight can be exposed to loss or physical damage at different stages of transportation. Cargo can be handled at warehouses, terminals, and ports, transferred between carriers, or transported over long distances by ocean, air, or road.<\/p>\n For a business, the financial impact can extend beyond replacing the goods themselves. A lost or damaged shipment can also affect inventory, customer orders, and other commercial commitments.<\/p>\n Cargo insurance provides a way to protect the insured value of the shipment against covered risks rather than relying solely on the liability of the carrier.<\/p>\n The exact coverage depends on the policy, commodity, and shipment, but cargo insurance can be used to protect goods against specified risks such as physical loss or damage during transportation.<\/p>\n Depending on the policy, covered events may include loss or physical damage caused by accidents, severe weather or other insured events during transit.<\/p>\n Policies can differ significantly in their exclusions, deductibles, and insured value, so shippers should review the actual terms rather than assuming every type of damage, delay, or Customs problem is covered.<\/p>\n Cargo insurance is not a single type of policy. The level of protection can vary depending on the shipment, commodity and terms of the insurance.<\/p>\n One common distinction is between broader \u201call-risk\u201d coverage<\/strong> and named-perils coverage<\/strong>.<\/p>\n All-risk cargo insurance<\/a> generally provides broader protection against physical loss or damage from external causes, subject to the exclusions and conditions in the policy. Despite the name, \u201call-risk\u201d does not mean that every possible type of loss is covered.<\/p>\n Named-perils coverage<\/strong> is narrower and only responds to the specific risks listed in the policy, such as certain accidents, fire, collision or other named events.<\/p>\n Cargo insurance can also be arranged for a single shipment<\/strong> or, for businesses shipping regularly, under a policy that covers multiple consignments over a period of time.<\/p>\n The exact coverage available through a freight forwarder or insurer can vary, so shippers should review the policy wording and exclusions before assuming that a particular loss will be covered.<\/p>\n Carriers can have liability when freight is lost or damaged, but that liability is not the same as insuring the shipment for its full commercial value.<\/p>\n Carrier liability can be limited by law, international convention, or the carrier’s terms of service. Cargo insurance is separate coverage that can protect the insured value of the goods against covered risks, subject to the terms, conditions, and exclusions of the policy.<\/p>\n This distinction becomes particularly important for high-value shipments where the value of the cargo greatly exceeds the carrier’s potential liability.<\/p>\n A1 Worldwide Logistics can arrange cargo insurance for customers who request coverage on consignments handled by A1.<\/p>\n Insurance is not automatically placed on every shipment. A1’s terms state that insurance must be requested in writing and confirmed in writing<\/strong>, with the customer responsible for the applicable premiums and costs.<\/p>\n If you would like to request coverage, complete A1’s Cargo Insurance Questionnaire<\/a> or contact us at 305-821-8995<\/strong><\/a> before the shipment moves. Coverage should be requested before transportation begins so the available insurance options can be reviewed for the specific shipment.<\/p>\nWhy Is Cargo Insurance Valuable?<\/h2>\n
What Can Cargo Insurance Cover?<\/h2>\n
What Types of Cargo Insurance Are Available?<\/h2>\n
Cargo Insurance vs. Carrier Liability<\/h2>\n
Cargo Insurance With A1 Worldwide Logistics<\/h2>\n