Cargo Insurance

What Does Cargo Insurance Mean?

Cargo insurance is a policy that protects the policyholder against the loss or damage of goods during shipment.

It is also known as freight insurance.

Insuranceopedia Explains Cargo Insurance

Cargo insurance protects the owner or consignor of goods against potential physical loss or damage from external causes during shipping. If the goods are damaged or perish while in the care of the shipper, the insurer will reimburse the policyholder for their value. What’s covered changes depending on how the goods are being moved, so a freight insurance policy written for an ocean shipment will read differently than one for a truckload moving across state lines. This insurance is often available directly from the shipping company or can be purchased from a third-party insurer. A cargo policy doesn’t pay for damage to the truck itself or for liability if that truck causes a wreck, so businesses moving freight by road usually carry commercial trucking insurance alongside their cargo coverage.