Cargo insurance: when you need it and what it costs
What insurance covers, how it differs from the carrier’s liability, and when not to cut corners. We show the difference with and without cover before the goods leave.
The essentials
Carrier liability is limited
By default the carrier’s liability is capped by international conventions (CMR for road, Hague-Visby for sea). These are small amounts per kg, not the full value of your cargo.
What insurance covers
Damage, loss and often delay — up to the full invoice value. The premium is usually from 0.1–0.5% of the sum insured, depending on the cargo and route.
When to insure for sure
Fragile, valuable, oversized or one-off cargo; a long multimodal leg; storm season. For cheap, robust goods you can rely on carrier liability.
What matters for a payout
A correct invoice and packing list, a record of the condition at loading (photos, a remark on the CMR) and timely notice of damage.
How the policy is issued and what it must contain
The sum insured is usually the invoice value plus freight and expected profit (up to 10%). In case of total loss you then recover not only the price of the goods but also the money spent on delivery. “All risks” conditions cover damage, theft, loss and general average at sea; cheaper “with particular average” conditions cover only major events such as fire or a wreck.
Check the deductible (the amount of damage the insurer does not reimburse), the territory and the period of cover — it should run “warehouse to warehouse” across the whole leg, including transhipment and terminal storage — and the beneficiary: if the goods have not been paid for in full, the beneficiary may be you as the supplier or a bank.
What to do if the cargo is damaged
- 1Record the damage before signing
A remark on the CMR or a commercial report at the port, photos and video of the opening, a report signed with the carrier. - 2Notify in time
Inform the forwarder and the insurer within the period stated in the policy (usually 3–5 days). Do not dispose of damaged goods or packaging before the surveyor has inspected them. - 3Collect the documents
Invoice and packing list, transport documents, damage report, a claim against the carrier and a calculation of the loss. - 4Settlement
We support the settlement: we file the claim against the carrier in parallel with the insurance claim, so that compensation comes through whichever channel works faster.
An honest comparison
Your Tranzit3 manager shows the difference with and without insurance before dispatch. The decision is yours.
Frequently asked questions
Can used equipment be insured?
Yes, at an agreed value with an inspection report and photos before dispatch. The premium may be higher than for new goods, and some insurers exclude factory defects and wear.
Does insurance cover late delivery?
A standard policy does not: it protects against damage and loss. Losses from delay are covered by a separate extension or by the carrier’s contractual liability if the delay was the carrier’s fault.
How much does cargo insurance from Europe cost?
As a guide, 0.1–0.3% of the sum insured for ordinary cargo on road and sea routes; more for fragile, expensive or oversized cargo. We issue the policy together with the transport booking, so there is nothing separate to fill in.
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