Cargo insurance provides protection to shipments during transit against loss, damage, or theft. This coverage provides reimbursement for the designated value of the goods in the event of a covered incident. Cargo insurance policies are available for cargo carried by land, air, and sea.
There are three main categories of cargo insurance: domestic transit, ocean, and project cargo.
Domestic Transit Insurance
Domestic transit insurance covers goods transported by land, including via trucks, barges, and aircraft. It covers risks such as theft, collision damages, and other potential hazards involved in land freight shipping. Land cargo insurance is typically used for domestic cargo as it only applies within a country’s borders.
Ocean Cargo
An ocean cargo policy provides coverage for goods that are transported by sea or air. It typically includes coverage for loss or damage to cargo caused by a range of perils and risks such as fire, sinking, collision, piracy, theft, jettison, and general average.
Project Cargo
Project cargo insurance is a type of specialized cargo insurance that provides coverage for unique and complex shipments that do not fit within the standard cargo insurance policies. This type of insurance covers the transportation of oversized or heavy items such as large pieces of machinery, industrial equipment, and construction materials that are moved as part of a project.
Project cargo insurance policies are tailored to meet the specific needs of the client and the project. The coverage provided under a project cargo insurance policy can vary depending on the size, value, and complexity of the cargo. The policy may include coverage for loss or damage to the cargo as well as other risks associated with the transport such as delay, storage, and transshipment.
Key Features
These policies can offer additional coverages, such as:
- War and strike coverage: provides protection against losses or damages caused by war or strikes, which are not typically covered by standard cargo policies
- Delay and consequential loss coverage: covers financial losses that result from a delay in the delivery of the cargo, such as lost sales or increased storage costs
- Temperature-controlled cargo coverage: provides coverage for goods that require temperature-controlled transport, such as perishable goods, pharmaceuticals, or electronics
- Forwarder’s liability coverage: covers the liability of freight forwarders or shipping agents for loss or damage to the cargo that occurs during transport
- General average and salvage coverage: covers the costs associated with general average or salvage which are situations where cargo is sacrificed or damaged to save the vessel and other cargo
Target Classes
- Manufacturers
- Distributors/logistics
- Importers/exporters
- Chemical, oil, and gas
- High tech, bio tech, and pharma
- Agricultural
- Temperature sensitive
- Dangerous goods/explosives
- Spirits
- Wine
Submission Requirements
- Cargo application
- 5-year loss history
- Minimum premium: $2,500
