Freight Insurance: Protecting Your Cargo in Transit

Freight insurance protects shippers against financial loss from cargo damage, theft, or loss during transportation. While carriers maintain liability coverage, standard limits often fall short of cargo value, making supplemental insurance essential for protecting high-value shipments against the full range of risks inherent in freight transportation across multiple modes and jurisdictions.

Understanding Coverage Options

Marine cargo insurance provides comprehensive coverage for goods in transit regardless of transportation mode, protecting against damage, theft, general average contributions, and other perils. Named perils policies cover specific risks at lower premiums, while all-risk coverage protects against any loss except specifically excluded events. Coverage should address the full replacement value including freight costs, duties, and profit margins. Annual policies suit frequent shippers, while single-shipment certificates work for occasional movements. Understanding carrier liability limitations, filing requirements, and proper documentation procedures ensures claims settlement when losses occur.