Moving the goods without losing the margin · Cover for the gap
Cargo insurance
Carrier liability is limited. Cargo insurance covers the gap between that limit and the invoice value.
Key facts
| Carrier liability | Limited by the terms and international conventions; often far below the invoice value |
|---|---|
| Cargo insurance | A separate policy covering loss or damage under the stated terms |
| Cover types | All-risk and named-perils policies differ in what they include |
| Declarations | Value, route, packing and transit mode must be accurate |
| Exclusions | Poor packing, inherent vice, delay and some handling risks are commonly excluded |
| Official source | The policy wording, the certificate and the insurer's claims guidance |
Cover for the gap
The carrier's liability is limited by the contract and the convention. For a container of goods, the limit can be a small fraction of the invoice value. Cargo insurance covers the difference, subject to the policy terms and the deductible.
The policy is not a substitute for packing. Poor packing, inherent vice and delay are commonly excluded. A claim can be refused when the damage is traced to the way the goods were packed, even when the event looks like an accident.
When the premium is justified
Insure when the loss would materially damage the business, not only when the premium looks cheap. High-value, fragile or single-source inventory is the obvious case. Low-value, easily replaced goods may not justify the cost.
Keep the commercial invoice, the packing list, the bill of lading and photos of the loading and the damage. Report a loss promptly and follow the insurer's survey process. A late report can be refused even when the loss is covered.
Frequently asked questions
Doesn't the carrier insure my goods?
The carrier has a limited liability, not full insurance. The limit is usually far below the invoice value.
What does all-risk cover?
It covers loss or damage from external causes, subject to exclusions and deductibles. The policy wording defines the boundary.
Is cargo insurance required?
It is not always legally required, but it is often required by the buyer, the bank or the forwarder's terms.
How do I claim?
Notify the insurer promptly, keep the documents and the damaged goods, and follow the survey process. Late notification can invalidate the claim.
Ask a compliance question
Free first answer by email. Tell us the destination, the product and the channel — we will point you to the rule and the official source. No obligation, no sales sequence.