What Does Air Cargo Insurance Mean?
Air cargo insurance is a contract whereby the insurer undertakes to pay the buyer of goods transported through air in case of physical loss or damage to said items due to covered perils. Depending on the agreement, the buyer or seller is required to buy air cargo insurance to protect their interest on the cargo.
Air cargo insurance is also known as air freight insurance.
Insuranceopedia Explains Air Cargo Insurance
Because international treaties and state laws offer limited protection to cargo in case of loss or damage, air cargo insurance can provide additional security. The premiums are usually based on the value of the items to be shipped. Other factors affect the pricing include the risks involved, the route to be taken, and the nature of the items to be transported. These days, aside from insurance companies, some trade service providers and freight forwarders also offer this type of protection.