Pricing & Surcharges

Cargo Insurance

Illustration for Cargo Insurance, Pricing & Surcharges

Insurance covering loss or damage to goods in transit. Carrier liability is limited by convention; shippers often buy all-risk cargo insurance separately from freight charges.

In depth

Carrier liability under Hague-Visby and air conventions is limited: often far below cargo value. Cargo insurance (all risks or named perils) protects the insurable interest of buyer or seller per Incoterm. Claims need documentation and timely notice.

Key points

  • Incoterms CIF/CIP specify minimum insurance only
  • Institute Cargo Clauses (A), (B), (C) define coverage breadth
  • Insure for 110% of invoice value where L/Cs require
  • General average contributions may apply: insurance helps

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