Cargo Liability Insurance
What Does Cargo Liability Insurance Mean?
Cargo liability insurance is an insurance policy that protects a carrier involved in the transportation of goods, as specified in a contract of carriage, against liability for loss or damage to the goods belonging to their customers.
Insuranceopedia Explains Cargo Liability Insurance
Cargo liability insurance is a policy purchased by the owner or operator of a truck, train, or ship engaged in the business of transporting goods from one location to another under a contract of carriage. This policy protects the owner or operator from liability for any loss or damage to the goods during transportation. In other words, the insurer compensates the consignor or sender of the goods with a specified amount if the goods are lost or damaged in transit before reaching the agreed destination.
Cargo liability insurance is one part of a broader insurance package that carriers typically need. Trucking companies, for example, also carry commercial trucking insurance to cover their vehicles and drivers. Businesses that want to protect the goods themselves, rather than relying solely on the carrier’s liability coverage, can purchase separate freight insurance for additional protection.
