Cargo Insurance
A cargo insurance is essential for businesses that want to protect their goods during transport. Whether you have goods transported by external carriers or in your own vehicles, it is important to have the right insurance coverage. With cargo insurance, you ensure that your goods are protected against damage, loss, and theft throughout the entire transport process.
What is cargo insurance?
Cargo insurance protects a company’s goods during transport with external carriers, whether it's purchased, sold, or other items that need to be insured. The insurance typically follows the terms of sale or purchase agreements (INCOTERMS®), where the business assumes responsibility for the items. In addition to external transport, the insurance can also cover the transport of goods in the company’s own vehicles.
Carriers often have limited liability under applicable conventions, meaning that full compensation for the value of goods is not guaranteed in the event of damage during transport. This is why cargo insurance is valuable when the company assumes full or partial responsibility for the goods during transport.
What does cargo insurance cover?
Cargo insurance typically covers damages and losses that occur during the transportation of goods with external carriers. The coverage can include damage, loss, theft, or disappearance of goods during transport. Cargo insurance can be tailored to a company's needs and covers both domestic and international transport. It is important to consult an insurance advisor to get a cargo insurance solution that fits the company’s specific requirements and risks.
Example of using cargo insurance
A company ships a valuable consignment of electronic devices to an international customer. During transport, the truck is involved in a severe collision, causing significant damage to the goods. The company files a claim with their cargo insurer and provides evidence of the damaged goods’ value. After a thorough assessment and documentation of the damage, the insurer pays compensation to cover the financial loss the company has incurred due to the damage. This helps the company recover from the loss and continue its operations without significant delays or financial consequences.
Get independent insurance advice at Söderberg & Partners
It can be challenging to predict when and to what extent damage will occur. That’s why it’s important to have an experienced insurance broker by your side who takes into account the risks and scenarios within business insurance that you may not have considered.
At Söderberg & Partners, our insurance brokers have the qualifications and experience to advise your business – whether you have 2 employees or more than 1,000.
It’s important to us that you, as a company, feel confident that you are properly insured. This allows you to focus on what you do best – running your business.
Based on our professional knowledge, we are often used as a sparring partner, especially when it comes to expanding business areas and evaluating the potential impact on your company. If we notice patterns in damages and types of claims, we assist you with strategies to prevent current or future damages, ensuring that your business is as well-protected as possible. We handle the administrative tasks and equip you to make the right decisions regarding risk management and insurance coverage.
We Often Get These Questions
A cargo insurance typically covers damages and losses that occur during the transport of goods such as commercial goods, tools, machinery, etc.
A cargo insurance can cover damage, loss, theft, or disappearance of goods during transit. The insurance can be tailored to the company's needs and covers both domestic and international transport.
No, it is not mandatory for businesses to have cargo insurance, but it can be costly to cover the loss if the company's goods are damaged or lost during transport, and no cargo insurance has been taken out.