Cargo Insurance

Unlike many other insurance products, cargo insurance is a highly specialised area as each cargo tends to differ greatly in terms of size, diversity, value and itinerary.

The majority of shippers consider cargo insurance as indispensable, as there is no guarantee of a recovery against a carrier or a freight forwarder for loss or damage to the goods.

In addition if a recovery is successfully made, it is commonly not for the complete amount of the loss because the law sets limits on the compensation that the carriers are required to pay.

It is worth noting that circumstances of carriage and freight forwarders conditions of trading also place indenture liabilities on shippers.

Under the majority of freight contracts, the shipper must supply indemnities with regards to the following objectives:

• ownership of the goods
• duties and taxes
• claims made against the forwarder in excess of the liabilities provided for in the trading conditions
• the accuracy of the description of the goods
• any failure to warn (and the proper loading) of goods which may pollute other goods
• un-declared goods of a dangerous or detrimental nature.